GST Council to consider compliance and enforcement changes

The GST Council is expected to consider a broad package of tax-process and enforcement proposals at a meeting reported for October 7 or October 8, including easier registration for small e-commerce sellers, changes to input tax credit and limits on arrest powers. The proposals have not been approved, and the supplied information does not confirm the meeting date or its outcome. The measures are intended to simplify compliance, reduce disputes and improve tax administration. Among the proposals, employers could be allowed to claim input tax credit on GST paid for life and health insurance premiums covering employees. Group policies currently carry 18% GST, which businesses have not been able to claim as credit, according to reports describing the proposal. Any change would depend on Council approval. Another proposal would make it easier for small sellers using e-commerce platforms to register in multiple states. Under the approach described, a platform’s warehouse could serve as a seller’s registered business location in states where the seller has no premises, subject to conditions including a genuine business presence in one state. One report estimated that about 9.