The 56th Goods and Services Tax (GST) Council meeting, held in New Delhi on September 3-4, 2025, is focused on a major push to simplify the GST system. The discussions highlight significant potential reforms, particularly aimed at benefiting exporters and streamlining processes for businesses.
Key Proposals to Streamline GST
Based on reports from the ongoing meeting, the GST Council is considering proposals that would make a notable difference for businesses:
- Faster Registration: The registration process for new, “non-risky” businesses could be dramatically shortened. The proposal aims to issue new GST registrations within just three working days from the application date.
- Quicker Refunds for Exporters: Exporters may soon see their refund claims processed much faster. The Council is considering a move to issue refunds within seven days for exports, a significant improvement aimed at boosting cash flow.
- Provisional Refunds: To ease financial pressure, the Council may also approve the provisional release of up to 90% of a refund claim for non-risky taxpayers.
- Stuck Refunds Resolved: There’s a push to quickly clear a backlog of refunds tied to the inverted duty structure. Refunds for sectors like textiles, pharma, chemicals, and fertilizers could be provisionally approved within seven days.
These measures, if approved, would significantly reduce the bureaucratic burden and liquidity issues that have long been a concern for businesses operating under the GST framework.
Please note that these are proposals currently being discussed, and the final decisions from the 56th GST Council meeting will be officially announced once the proceedings are concluded.