IAMAI Welcomes GST Council’s Push to Simplify Compliance and Cut Litigation

Pune: The Internet and Mobile Association of India (IAMAI) welcomed the Goods and Services Tax (GST) Council’s recommendations to simplify tax compliance for businesses, reduce litigation and rationalize enforcement provisions under the GST framework.

IAMAI said in a statement that it 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,” it said.

IAMAI also noted the proposal to increase the statutory threshold for initiating prosecution from Rs 1 crore to Rs 5 crore.

“However, considering the scale of business operations, there remains scope to further enhance this threshold,” the statement added.

Moreover, 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, the Association noted.

“Similarly, faster ITC refunds through greater automation and shorter processing timelines could ease working capital constraints and improve cash flows,” it pointed out.

IAMAI also hailed the provision allowing input tax credit (ITC) on 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,” it said, adding that 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.