New Delhi: The 57th GST Council meeting has proposed a wide range of reforms aimed at easing compliance, improving access to input tax credit (ITC), unlocking working capital and simplifying processes for taxpayers, according to Ranjeet Mahtani, Partner, Dhruva Advisors.
Commenting on the recommendations, Mahtani said the meeting, held after more than a year, had presented “significant amendments and reforms” across several areas, describing the measures as a major boost for taxpayers ahead of the festive season.
The recommendations cover a broad spectrum, including GST compliance for small businesses, the registration process, access to previously blocked or unavailable input tax credit, and enabling export status for businesses along with consequential refund benefits.
According to Mahtani, some of the most significant changes relate to refunds of input tax credit. The proposed reforms include bringing input services within the eligible pool of credit for businesses facing an inverted duty structure. The Council has also proposed measures concerning credit on plant and machinery for exporters.
The proposed changes also seek to modernise GST administration by reducing processing times and moving towards a more risk-based system rather than an officer-driven process. Such measures are expected to improve predictability and reduce procedural burdens for taxpayers.
However, decisions on two issues concerning input tax credit have not yet been finalised, with the matters instead being referred to a committee for further consideration.
Another important legislative proposal highlighted by Mahtani is the proposed deletion of arrest provisions from the GST statute. While prosecution for criminal offences would continue, the proposed change would mean that the proper officer would no longer have the power under the GST framework to deprive an individual of personal liberty through arrest.
“Overall, the recommendations will unlock working capital as also ease compliances and processes for taxpayers,” Mahtani said.
He added that the recommendations could have a positive impact on Indian businesses by simplifying compliance and improving the ease of doing business. At the same time, the reforms are expected to support the government’s revenue objectives through a broader tax base and enhanced collections.
Mahtani also pointed to the revenue performance following GST 2.0, noting that September 2025 reforms were followed by an approximately 11% increase in GST revenue during FY 2026-27 compared with the previous year.
The 57th GST Council recommendations, once formally notified and implemented through the required legislative and administrative processes, could therefore have implications across businesses of different sizes, particularly in areas of working capital, refunds, exports, registration and compliance.