GST 2.0 Shifts Focus From Enforcement To Facilitation: Dinakar

Lanka Dinakar, chairman of the Twenty Points Programme (Viksit Bharat–Swarna Andhra Pradesh) implementation and BJP national council member, has welcomed the taxpayer-friendly recommendations of the 57th GST Council meeting, describing them as a shift towards trust-based compliance and easier business operations. He said the proposed reforms would reduce litigation, improve transparency and provide greater regulatory certainty to businesses, particularly micro, small and medium enterprises (MSMEs), startups and traders.

The recommendations include removing arrest provisions under the CGST Act, raising the prosecution threshold from `1 crore to `5 crore and reducing the maximum general penalty from `25,000 to `10,000. A `10,000 minimum threshold for GST show-cause notices is also proposed to curb disputes over small amounts.

Dinakar highlighted faster, technology-driven refunds, improved input tax credit provisions and safeguards against arbitrary inspections of goods in transit. Simplified GST registration provisions for eligible small e-commerce suppliers would help businesses expand across states without establishing separate physical premises.

Dinakar stressed that effective implementation through legislative amendments, digital systems and clear administrative guidelines would determine the success of the reforms. He complimented the GST Council, Union finance minister Nirmala Sitharaman and state governments for advancing taxpayer-orientated measures.