AP Chambers Backs GST Council Reforms
The Andhra Pradesh Chambers of Commerce and Industry Federation has welcomed the recommendations of the 57th GST Council meeting, saying the reforms could simplify compliance, ease penalties and improve working capital for businesses, particularly MSMEs.
AP Chambers Welcomes GST Compliance Reforms
AP Chambers President Potluri Bhaskara Rao said the Council’s recommendations on arrest, prosecution and penalties were significant steps towards a more business-friendly GST framework.
The Council has recommended removing arrest provisions under GST and raising the prosecution threshold from ₹1 crore to ₹5 crore.
It has also proposed reducing the general penalty from ₹25,000 to ₹10,000 and introducing a ₹10,000 minimum threshold for issuing show-cause notices.
Faster Refunds Could Improve Working Capital
The industry body also welcomed measures aimed at speeding up GST refunds.
These include deemed acknowledgement where authorities fail to act within the prescribed period, automation of refunds from excess cash-ledger balances and provisional sanction of 90% of eligible refund claims.
AP Chambers said faster refunds could improve liquidity and ease working-capital pressures for businesses.
Wider Input Tax Credit Rules Backed
The federation also supported the proposed expansion of Input Tax Credit eligibility to expenses including employee health and life insurance, telecom towers and pipelines outside factory premises.
Refunds of accumulated ITC on input services are expected to take effect from November 1, 2026, while certain capital-goods-related changes are scheduled from April 1, 2027.
AP Chambers urged the government to continue simplifying GST compliance, ensuring timely refunds and rationalising the tax framework to strengthen confidence among industry and MSMEs.
