New Delhi, Oct 09: The Internet and Mobile Association of India welcomes the Goods and Services Tax Council’s recommendations to simplify tax compliance for businesses, reduce litigation and rationalise enforcement provisions under the GST framework.
IAMAI appreciates the proposed removal of GST officers’ arrest powers as an important step towards curbing coercive enforcement and strengthening trust between businesses and authorities. This measure will enhance regulatory certainty, create a more predictable business environment and improve the ease of doing business in India. IAMAI notes the proposal to increase the statutory threshold for initiating prosecution from ₹1 crore to ₹5 crore. However, considering the scale of business operations, there remains scope to further enhance this threshold.
The Association further notes that the proposed simplification of GST registration for e-commerce sellers could reduce compliance burdens, expand market access and enable more small businesses to participate in India’s digital economy. Similarly, faster ITC refunds through greater automation and shorter processing timelines could ease working capital constraints and improve cash flows.
IAMAI also welcomes the provision allowing input tax crediton employee health insurance expenditure incurred by employers. The Association recommends extending this eligibility to aggregators that voluntarily procure insurance coverage for gig workers engaged through their platforms. Such a measure would avoid disparity in tax treatment and encourage aggregators to widen coverage and enhance benefits for these workers.
The Association also urged the GST Council to maintain parity in GST treatment between offline and online mediums, offering the same services, such as in the cases of non-ac bus booking and ed-tech services.
