Next GST Council likely to focus on registration, audit, refunds beside others

The GST Council, in its next meeting, is likely to further ease the process of registration, refund and audit, a top Finance Ministry official told businessline. He also said the new provisions for direct taxes in the finance bill are meant to honour the trust.

Our officers have held two rounds of extensive meetings. Basic agenda has been prepared. Once we get more concrete suggestions, we will finalise the agenda for the GST Council, he said, adding that the next meeting could take place once the Budget is passed. This means either the last week of March or early April.

The last GST meeting, which took place on September 3, recommended a revamp of the rate structure. Asked about key issues likely to figure in the next meeting, the official said these could be related to registration, refund and audit, besides others.

According to tax experts, the artificial distinction between goods and services for the purpose of refund has led to significant working capital blockages for various industries. The GST Council should consider allowing refunds of such accumulated ITC on input services, thereby ensuring seamless flow of credit and improved liquidity for businesses, they said.

Tax proposals in Budget

Talking about the key message behind new tax proposals announced in the budget or proposed in the Finance Bill, the official said: "Let the taxpayers be in control of things." In other words, the effort would be to facilitate those who have a better compliance record. For example, if an assessee has been issued a show cause notice under section 148 of the Income Tax Act, and the assessee can pay the disputed tax along with interest and penalty and file revised or updated returns within the specified the Assessing officer can close the process based on that, he said.

Under the new provision, returns can be revised by non-audit assesses and can be filed any time within twelve months (instead of nine months at present) from the end of the relevant tax year or before the completion of the assessment, whichever is earlier. However, for filing a revised return after December 31, a fee will be imposed between Rs.1,000 and Rs.5,000. Updated return can be filed within four years from the end of the financial year succeeding the relevant tax year. Such a return may be furnished even if no original, belated or revised return was filed earlier

The official gave another example about the ease of taxation. The scope of granting of immunity under section 440 of the Income-tax Act, 2025, is proposed to be expanded to cover all such cases where penalty proceedings are initiated for under-reporting in consequence of misreporting of income, provided the taxpayer pays an additional income tax as specified in lieu of such penalty.

The official said that now the key would be implementation, as detailed rules and regulations are in place.

This means big work for the officials in the pipeline, he said.

www.thehindubusinessline.com, dt. 04-02-2026