GST rates are set to remain unchanged at the Council’s October 8 meeting, with the 57th GST Council instead expected to focus on a package of procedural and structural reforms covering registration, refunds, input tax credit and enforcement, Finance Ministry sources said.
The meeting is not expected to consider any broad rate changes, with only a limited set of rationalisation and clarification issues on the agenda, the sources said.
The proposals also seek to bring some business expenses currently outside the credit chain within its ambit and prevent double taxation where a service is resold in the same line of business. Registrations suspended over procedural lapses could also be restored automatically once the lapse is corrected, while the process for cancellation of registration on closure of a business is proposed to be simplified. The Council is also expected to consider measures aimed at easing GST rules for exporters. Billing a foreign client through an overseas branch would not lead to loss of export status under the proposal. Testing, repair, certification and research services provided to foreign clients could also qualify as exports even where the goods remain in India. Payment-realisation requirements would be aligned with Reserve Bank of India norms. The proposals have been prepared through the Law Committee and Fitment Committee following consultations with states.
Changes approved by the Council are expected to be implemented in phases through 2027.
The meeting is not expected to consider any broad rate changes, with only a limited set of rationalisation and clarification issues on the agenda, the sources said.
