GST Council retains rates, unveils compliance reforms and faster refunds

India's GST Council, at its 57th meeting on Thursday, retained existing tax rates and announced major reforms to simplify compliance, speed up refunds, and reduce litigation for businesses. The Council also decided to consider rate changes only once a year for greater stability. Key changes include automatic approval for low-risk GST registrations within three working days, faster refund processing with a 10-day acknowledgment timeline, and expanded input tax credit relief for employee health insurance and telecom towers. The Council also proposed revoking officers' arrest powers and raising the prosecution threshold from Rs 1 crore to Rs 5 crore. Additionally, refunds for input services under the inverted duty structure will be allowed from November 1, 2026, and for plant and machinery from April 1, 2027. The general penalty for unspecified offences was reduced to Rs 10,000, and notices for amounts of Rs 10,000 or below will be withdrawn.