Decisions of 57th council is after long discussions and deliberations within the Government including States. Every concern of the stakeholders has been given due consideration and has addressed all the major process related issues Mr. Balasubramanian said while virtually addressing “The GST Reset-What the 57th Council Means for Business,” an interactive session organised by the Bangalore Chamber of Industry and Commerce (BCIC) in Bengaluru. Government will now focus on implementation of these recommendations and would work with the states to ensure uniform implementation.
CA K Ravi, President, BCIC, said, “Navigating tax reforms and bridging the gap between industry and government remains a key priority for BCIC. Through constructive dialogue, we advocate simplified compliance, policy clarity and seamless trade. As we celebrate our Golden Jubilee, we are strengthening our international presence, with plans to establish an office in Singapore, while advancing collaborations in AI research, industry engagement and social initiatives to create meaningful opportunities for members.”
N Venkataraman, Additional Solicitor General of India, who also addressed the gathering virtually, explained that restrictions on ITC reflected legislative policy choices and could be reconsidered when supported by convincing evidence. He observed that blocking credit was an exception rather than the general rule. Emphasising fairness in tax legislation, he also noted that retrospective amendments had, in certain instances, been introduced in favour of taxpayers to address difficulties involving transitional credits.
E-Way Bills Serve a Wider Economic Purpose
Responding to a question on the possibility of removing e-way bills, Balasubramanian said an officers’ working group involving states had reviewed the mechanism and examined all aspects.
He explained that e-way bill data supported logistics decision-making and served as a high-frequency input for economic forecasting and nowcasting undertaken by the Reserve Bank of India and statistical authorities.
However, he acknowledged concerns over indiscriminate stoppage of goods vehicles must be mitigated. The recommended reforms sought to address such practices by requiring specific intelligence and authorisation by an officer not below the rank of Joint Commissioner for interception, alongside restrictions on interception in transit states.
Legislative Safeguards for Genuine Taxpayers Under Examination
On Section 16(2)(c), which links a recipient’s eligibility for ITC to payment of the corresponding tax to the government, Balasubramanian said the Council had referred the issue to an officers’ committee with a direction to reach a conclusion within three months. The Council would subsequently consider an appropriate decision.
He said genuine taxpayers who had fulfilled the applicable statutory requirements should not face undue hardship and this will be the basis for further deliberations.
Explaining the broader reform agenda, Balasubramanian said the government was seeking to complement rate rationalisation with simpler procedures across registration, refunds, dispute resolution and cancellation of registration.
He cited growth of approximately 26% in overall taxable supplies and business-to-consumer taxable supplies between October and August compared with the corresponding period of the previous year. GST revenue growth during the second quarter was around 15%, he added.
Successful implementation of process reforms would require cooperation from central and state tax officials, he said. The Centre was conducting training programmes for officers and trainers, with state-level participation also envisaged. Progress would be monitored through management information systems, with timely corrective measures wherever necessary.
The interactive session, organised under the aegis of BCIC’s Indirect Taxes Expert Committee, opened with a welcome address by NR Badrinath, Chairman of the Indirect Tax Committee, followed by an opening address by CA K Ravi. Venkatraman E, Co-Chairman of Indirect Tax Committee presented an overview of the key changes recommended by the 57th GST Council.
A panel discussion titled “Decoding the GST Reset-Implications for Business and Tax Practice” brought together PV Srinivasan, Partner and Chief Mentor, PVS Advisors, and Mentor, Indirect Taxes Expert Committee, BCIC; G Shivdass, Senior Advocate; and Arun Velayudhan, Chief Financial Officer and Board Member, Toyota Connected India Pvt Ltd. Venkatraman E moderated the discussion.
BCIC stated that it had submitted 13 recommendations to address industry concerns and improve GST implementation, of which seven were considered by the 57th GST Council. These included allowing ITC on employee insurance and removing interest liability on reversed ITC. BCIC would further work with the Government on issues such as SEZ refund applications, invoice endorsements and real estate valuation. The discussion underscored the importance of continued government-industry collaboration in advancing a trust-based, automated and simplified GST regime.
The session concluded with a summary and Vote of Thanks by Dr Prashanth Reddy, Senior Vice President, BCIC.
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