GST panel restructured, five big states get permanent seats

The Centre has found that misuse of input tax credit on vehicle purchases by businesses is low, with most claims linked to genuine business expenses, according to a Businesstoday report citing a government source. Separately, five states, Maharashtra, Uttar Pradesh, Karnataka, Tamil Nadu and Gujarat, have been given permanent seats on a new 12-member standing committee of officers under the GST Council, Kalingatv reported. The remaining seats will rotate among other states every two years based on their GST footprint.

CBIC Chairman Vivek Chaturvedi said on 13 October that the focus is shifting to reducing compliance burdens, with proposed reforms including withdrawal of arrest provisions under GST law, automated refunds, and a higher threshold for prosecution, according to the Economic Times. CNBCTV18 reported that the Centre sees limited scope for further GST rate discussions and that fuel taxes may be reviewed only when the system is more robust. The Centre is also pushing to expand the GST base beyond 1.6 crore filers.