GST Reforms Should Be the Beginning of More Reforms in All Laws

Last week, the Goods and Services Tax (GST) Council recommended rationalisation and reduction of GST rates on most items of mass consumption, consumer durables, motor vehicles, and some services such as goods transport agency, certain categories of job-work, etc.

- TNC RAJAGOPALAN

Such changes have received sufficient media coverage, and so, I will focus more on certain other aspects.

On zero-rated supplies of goods and services, the jurisdictional GST officers already have the powers to provisionally grant, within seven days of receipt of application, 90 per cent of refunds claimed. The GST council has now recommended that starting this November, such provisional refunds must be granted on the basis of identification and evaluation of risks by the system. The council has recommended similar treatment for refund claims arising out of the inverted duty rate structure, a sensible move as the reduction in GST rates will leave many suppliers with unutilised input tax credit (ITC). The council has also recommended the removal of the minimum threshold limit of ₹1000 for the grant of GST refunds on exports, with a view to helping exporters of small consignments through couriers.