Recomendaciones de la 56.ª reunión del Consejo de GST: Iniciativas destinadas a facilitar el comercio

56th GST Council Meeting held on 3rd September, 2025 under the chairmanship of Hon’ble Union Finance and Corporate Affairs Minister. The GST Council meeting presented a “Next Generation GST Reforms” to enhance the quality of life of every citizen. The Council has recommended rationalization of the 4-tiered tax rate structure into a citizen-friendly “Simple Tax”. The GST shall be charged on a standard rate of 18% and a merit rate of 5% with an exceptional rate of 40% on certain luxury and sin goods. 

Las recomendaciones del Consejo del GST incluyeron:

1. Cambios en las tasas del GST para bienes y servicios;
2. Diversas iniciativas destinadas a facilitar el comercio

This article discussed the initiatives provided by the GST Council to facilitate trade:

1. Registration Related Recommendations:

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a. Simplified GST Registration for Small and Low-Risk Businesses:

• The council has recommended the introduction of an optional simplified GST registration scheme. 
• Under such a scheme, the GST registration shall be granted on an automated basis within 3 working days from the date of submission of the application.
• Such benefit shall be available to low-risk applicants and applicants who determine (as per their own assessment) that their output tax liability on supplies to registered persons will not exceed Rs. 2.5 lakh per month (inclusive of CGST, SGST/UTGST and IGST). 
• The scheme will provide for voluntary opting into and withdrawal from the scheme and shall come into operation from 1 November 2025.

b. Simplified Registration Scheme for small suppliers supplying through electronic commerce operators:

• Presently supplier supplying through an e-commerce operator is required to obtain a virtual or non-operational space in every state where GST registration is required as PPOB.
• The Council has proposed to simplify the concept of the GST registration mechanism for small suppliers making supplies through e-commerce operators (ECOs).
• Currently, Suppliers supplying across multiple States are facing challenges in maintaining a principal place of business in each State.
• The detailed modalities for operationalizing such a scheme will be placed before the GST Council.

Read Also: Understanding GST Number: Meaning and Format Explained

2. Operationalization of the Goods and Services Tax Appellate Tribunal (GSTAT)

• The Goods and Services Tax Appellate Tribunal (GSTAT) will be made operational for accepting appeals before the end of September and will commence hearing before the end of December this year. 
• Further, 30th June, 2026, shall be the limitation of filing of backlog appeals. 
• The Principal Bench of the GSTAT will also serve as the National Appellate Authority for Advance Ruling. 

3. Recommendations related to GST refund

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a. Sanction of 90% risk-based provisional refund:

• To enhance the liquidity of the business, the GST Council has recommended an amendment in rule 91(2) of the CGST Rules, 2017, to provide for the sanction of 90% of the refund claimed as a provisional refund.
• Such a refund shall be granted post-identification and evaluation of risk by the system. 
• However, instead of granting a refund on a provisional basis, the proper officer may proceed with the detailed scrutiny of the refund claim after recording the reasons for the same in writing.
• The category of persons shall be notified to whom refund shall not be granted on a provisional basis. 
• This provision shall be operationalised from 1st November 2025.

b. Risk-Based Provisional Sanction of refunds arising out of inverted duty structure (IDS):

• Similar to a rated supply, the Council has recommended a sanction of 90% of the refund claimed on a provisional basis, in cases arising out of an inverted duty structure.
• The provisions refund shall be granted on the basis of identification and evaluation of risk by the system.
• This recommendation shall become operational from 1st November 2025.

c. Refund in respect of low-value export consignments:

• The GST Council has recommended removing the threshold limit for refunds arising out of exports made with payment of tax. 
• This will particularly help small exporters making exports through courier, postal, etc.

4. Amendment in place of supply for intermediary services:

• Presently, as per Section 13(8)(b) of IGST Act, 2017, the place of supply for intermediary services, where either the location of the supplier of service or the recipient of service is outside India, is the location of the Supplier of services. 
• Therefore, the supply of intermediary services outside India does not qualify as “Export of Services” and therefore is not eligible for export Benefits.
• The GST Council has recommended the omission of section 13(8)(b) of the IGST Act 2017. 
• Accordingly, post such amendment, the place of supply for “intermediary services” shall be the location of the recipient of such services. 
• Therefore, the Indian exporters of such services shall be eligible to claim export benefits.

5. Amendment with respect to Post Sale Discount:

• De conformidad con la Sección 15(3)(b)(i) de la Ley CGST de 2017, el valor del suministro no incluirá un descuento si dicho descuento se establece en los términos de un acuerdo celebrado en o antes del momento de dicho suministro y está vinculado específicamente a las facturas pertinentes.
• Por lo tanto, no se permitía deducir del valor imponible los descuentos proporcionados sin una vinculación específica a las facturas.
• El Consejo de GST ha recomendado omitir la sección 15(3)(b)(i) de la Ley CGST de 2017, eliminando así el requisito de establecer el descuento con las facturas pertinentes.
• El descuento debe concederse mediante una nota de crédito emitida conforme a la sección 34 de la Ley CGST, y el destinatario debe revertir el ITC correspondiente cuando el valor del suministro se reduzca mediante una nota de crédito de GST.
• En consecuencia, se rescinde la circular n.º 212/6/2024-GST de fecha 26 de junio de 2024, que establecía un mecanismo para garantizar el cumplimiento de las condiciones de la Sección 15(3)(b)(ii) de la Ley CGST de 2017.

6. Circular de emisión sobre ciertos temas relacionados con el descuento posterior a la venta:

Para eliminar ambigüedades y disputas legales, el Consejo de GST ha recomendado proporcionar aclaraciones con respecto a los siguientes temas sobre el descuento posterior a la venta:

1. la no reversión del ITC debido a descuentos posteriores a la venta mediante notas de crédito financieras/comerciales;
2. el tratamiento del descuento posterior a la venta proporcionado por el fabricante al distribuidor como contraprestación adicional en la transacción entre el distribuidor y el cliente final;
3. el tratamiento del descuento posterior a la venta como contraprestación en lugar de actividades promocionales, etc., realizadas por el distribuidor

Conclusion:

Se espera que los beneficios posteriores al impuesto sobre la renta proporcionados al ciudadano común, tales como cambios favorables en las disposiciones del GST y tasas de GST reducidas, fortalezcan el crecimiento económico del país al impulsar la demanda interna. La mayoría de las recomendaciones mencionadas anteriormente no requieren circulares detalladas para garantizar una implementación uniforme de dichas recomendaciones.