CAIT Kashmir welcomes proposed GST measures, seeks timely implementation

Ziraat Times News Desk

Srinagar, October 8: The Confederation of All India Traders (CAIT), Kashmir Chapter, has welcomed the key takeaways from the 57th GST Council meeting, describing the proposed measures as a step towards simplifying compliance, reducing procedural hardships and improving the ease of doing business.

CAIT Kashmir Chapter President Farhan Kitab said the proposals address several long-standing concerns of traders, particularly those relating to penalties, refunds, registration procedures and inspections.

Among the key proposals welcomed by the traders’ body are the proposed removal of GST arrest powers, an increase in the prosecution threshold from ₹1 crore to ₹5 crore, and a reduction in the general penalty from ₹25,000 to ₹10,000. The proposals also envisage automatic approval for 65% of routine registration amendments.

On refunds, the proposed measures include automatic processing of 90% of eligible refunds within three working days and a reduction in the acknowledgement deadline from 15 days to 10 days. Refunds under the inverted duty structure are also proposed to cover input services from November 1, 2026.

The proposals include an optional annual return facility, with quarterly tax payments, for businesses with turnover of up to ₹5 crore that supply exclusively to consumers. Small sellers are also expected to benefit from easier access to e-commerce platforms across states.

Other proposed measures include GST input tax credit on employee health and life insurance, telecom towers and pipelines located outside factory premises. The proposals also seek to restrict the stopping of goods vehicles to cases involving specific intelligence and prior authorisation.

On exports, the proposed changes would extend benefits to specified overseas services and work carried out on foreign-owned goods. No immediate GST rate changes are proposed, while annual reviews of tax rates are envisaged.

“These key takeaways are encouraging for the trading community. Faster refunds, simpler compliance and reduced procedural hardships will support traders’ working capital and business confidence,” Kitab said.

He urged the timely implementation of the proposed measures, saying this would be necessary to ensure that the intended relief reaches traders and small businesses on the ground.

CAIT Kashmir Chapter reiterated its commitment to advocating for traders’ interests and engaging with the government to promote a simpler, fairer and more predictable GST regime, with lower compliance costs and improved ease of doing business.