VIJAYAWADA: The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) welcomed the recommendations of the 57th GST Council meeting to simplify compliance, ease penalties and prosecutions, expedite refunds and improve ease of doing business.
In a release issued on Friday, AP Chambers President Potluri Bhaskara Rao observed that the proposed removal of arrest provisions, increase in the prosecution threshold from Rs 1 crore to Rs 5 crore, reduction in the general penalty from Rs 25,000 to Rs 10,000, removal of minimum punishment provisions and Rs 10,000 threshold for show-cause notices are welcome steps, particularly for MSMEs.
Faster refunds, deemed acknowledgements for delays, automatic refunds of excess cashledger balances and provisional sanction of 90% of eligible refund claims will improve working capital availability, he said.
Expanded Input Tax Credit (ITC) provisions covering employee health and life insurance, telecom towers, pipelines outside factory premises, free samples and expired or destroyed goods, along with refunds of accumulated ITC on input services from November 1, 2026, and capital goods from April 1, 2027, are also welcome, the AP Chambers said.
AP Chambers appreciates the Council’s approach and urges further reforms to ensure simpler compliance, fair taxation, timely refunds and rationalised rates, strengthening industry confidence and supporting farmers, MSMEs and sustainable economic growth, the release read.
