TaxTMI 
TaxTMI 
TaxTMI 
This is in continuation of the earlier article published on 12/02/2026
1. The Government has been very liberal on Income Tax front as effective from assessment year 2026-27 and for all subsequent years, where the total income excluding certain rare exceptions is within 12 lakhs, income tax is not attracted.
2. The Government has been equally liberal on GST front as well during September 2025 when the rates were rationalized. The benefits are having far reaching consequences for the common man especially in lower income group.
3. For the first time, after completion of eight full years, significant relief on taxes as well as setting up and making operational of GSTAT were done to ensure relief to common man.
4. The rationalization measures did not in any way affect the GST collection in a significant manner as October 25 collections stood above October 2024 collections, despite rationalization.
5. Even to pass on the benefits to the taxpayers which is required arising out of inflation, the basic exemption limit requires to be increased by a minimum of 50% as on today.
6. The suggestion is to keep 50 lakhs as basic exemption for services and 100 lakhs as basic exemption for goods. This proposal shall definitely make the tax administration in a qualitative manner both at State as well as Central levels.
7. The benefits available under section 44ADA of the Income Tax Act, 1961 which is 50 lakhs may be considered for GST as well as both are under the same Finance Minister.
8. The reduced workload of tax officials which arises on account of effective registered persons shall definitely improve the administration in a much better manner.
9. When more focus is on reasoned order, the chances of such orders being set aside or even quashed at a subsequent date by a competent court is minimized.
10. Number of appeals reaching First Appellate Authority as well as GSTAT must come down so that the focus of taxpayer shifts from litigation to business developments, which again improves GST Collection.
11. How long are we planning to continue wrong invocation 73, 74 or 74A?
12. How long are we comfortable to pass duplicate proceedings and duplicate collection of GST as in the case of Sri Velavan Fireworks, Sivakasi?
13. How long are we willing to harass genuine buyers on account of supplier’s default as in the case of Sahil enterprises?
14. How long we are expected to continue to issue single show cause notice for multiple financial years which all jurisdictional high courts have uniformly held as impermissible.
15. Should we improve to move on to new interpretational issues or should continue to issue show cause notices based on only GSTR Differences ?.
Is CBIC at least little bit sensitized on the above points or would like to continue as such to get comments as passed by the Division Bench of Orissa High Court M/s. Aruni Stone Crusher, Dhenkanal Versus Assistant Commissioner, GST & Central Excise, Jajpur and another - 2026 (2) TMI 827 - ORISSA HIGH COURT
The operative portion reads as “this Court is of the considered opinion that the Writ Petitions deserve to be allowed and are, hereby, allowed. Consequently, the order dated 19.12.2025 passed by the Assistant Commissioner, CGST and Central Excise, Jajpur Division, Jajpur Road vide Annexure-8 enclosed with W.P.(C) No.1504 of 2026 is set aside. It is directed that the petitioner shall submit explanation/reply/objection in connection with Demand-cum-Show Cause Notice dated 17.11.2025 read with summary of Show Cause Notice dated 25.11.2025 with respect to Financial Years 2018-19 to 2022-23 (Annexure-5) enclosed with W.P.(C) No. 36758 of 2025 within a period of seven (07) days hence. The aforesaid authority shall do well to consider such Demand-cum-Show Cause Notice dated 17.11.2025 read with summary of Show Cause Notice dated 25.11.2025 and pass fresh order within a period of fifteen (15) days thereafter upon affording opportunity of personal hearing to the petitioner. Needless to observe that no unnecessary adjournments shall be granted and it is desired that the petitioner shall cooperate in the adjudication proceeding.”
Conclusion: It is urged that the GST Council may kindly consider the proposal to increase the basic exemption limit under GST Law with effect from 01/04/2027 as the council may deem fit please.