TaxTMI 
TaxTMI 
TaxTMI 
1. During the period from 01/07/2017 till 31/12/2024 covering a period of 90 months, the GST Council met 37 times, the first one being on 17/07/2017 (19th meeting of the council) and the last one being on 21/12/2024 (55th meeting of the council). On an average, a meeting took place in every two and a half months. The next meeting possible during August 2025 has a gap of almost 8 months, though as per norms it should be at least one per quarter, we are in the third quarter crossing two quarters without any meeting. First request is to convene the next meeting in August 2025 itself.
2. Recently several service providers and traders were issued with 1000s of notices to file GST Returns and pay taxes. This happened based on data of digital payments. The worst part is that even vegetable traders, who are not in the GST net received such notices. To put a curb on these kind of activities, let the threshold limit be increased to 50,00,000 for service providers and 1,00,00,000 to traders with effect from 01/04/2026 so as to facilitate the GST DEPARTMENT to focus on taxpayers who are having significant knowledge on GST wherein unnecessary notices, which is a real burden on the department may come down. This step shall definitely improve the tax collection more than the taxes forgone from small players as the department will have more time to focus on potential taxpayers.
3. Almost on every working day of the jurisdictional high courts, most of the high courts pass orders either setting aside or quashing the adjudication orders as well as orders passed by the first appellate authority. This is happening mainly due to the fact that several sections such as 75 (Natural Justice) 129 ( Detention of goods) 130 (Seizure of goods), Section 29 (cancellation of registration in an arbitrary manner) are happening on a daily basis. Despite the fact that in a few cases, few orders were passed by high courts wherein the officers were summoned to offer explanations and in some other cases cost was imposed on revenue, such absurd orders are only increasing till date. To put an end, the Council may suggest the CBIC to issue necessary instructions to the field formations to ensure that absurd orders are not being passed in future.
4. GSTAT is not functional even in the ninth year of GST. Supreme Court has already expressed their views on this issue in December 2024 itself in the matter of Team Computers Private Limited Versus Union of India & Ors. - 2024 (12) TMI 875 - SC Order, but till now, the final decision has not come. While everyone understands the challenges of the Government in establishing several benches across India, the council may explore the possibilities of opening the benches in a phased manner so that at least in cases where members as well as premises are identified, the respective bench may start functioning without loss of further time.
5. All over India, 1000s of orders passed by various first appellate authorities may be preferring an appeal in GSTAT as and when the required notification is issued. It is suggested that the website of the GST Appellate Tribunal may be made operational immediately to enable the taxpayers to file such appeals who are ready to file such appeal.
6. The ease of doing business shall definitely improve once the threshold limits are increased to 50 lakhs for service providers and 100 Lakhs for others as the number of cases shall come down significantly. This will facilitate the administrators on (say) 80% of the current tax payers who contribute (say) more than 95% of GST Collections, by way of volume of business. Considering the growth in the Indian Economy during last 8 years since the introduction of GST in India, this threshold exemption of 50 lakhs and 100 lakhs are very fair.
7. There is no doubt that seamless flow of ITC has improved since July 2017 as compared with the past. But, the real curb which absolutely has no logic is Section 17 (5). While other sub sections of section 17 except sub section 5 are on fundamental footing, the restrictions imposed in sub section 5 of section 17 is totally against seamless flow of ITC as well as basic definitions contained in section 2 (59) and 2 (60) on input and input services. Hence, it is suggested that sub section 5 of section 17 may be deleted with effect from 01/04/2026.
8. If all the suggestions or the possible suggestions are considered by the GST Council in their 56th Council meeting or 57th Council meeting, it shall go a long way in terms of trade facilitation.