CII calls for GST-like reforms in land, labour & local approvals

"The GST Council has demonstrated that difficult institutional reforms can be achieved when the Centre and states agree on common objectives and work together to deliver them," said Chandrajit Banerjee, director general of CII. "We need similar coordination and reform commitment across land, labour, construction, utilities and local permissions to improve the ease, cost and speed of doing business."The GST reforms included raising the prosecution threshold fivefold, from ₹1 crore to ₹5 crore, narrowing specified offences under Section 132 of the CGST Act, rationalising imprisonment provisions and removing arrest powers through the proposed omission of Section 69.

The changes require legislative amendments for implementation.Live EventsCII said the measures would reduce uncertainty, legal costs and reputational risks for businesses, particularly MSMEs and first-generation entrepreneurs, while preserving criminal action against deliberate fraud and evasion. The clarification and circulars on registration, notices and adjudication, following the decision, offer greater clarity in tax administration and evidence-based treatment of fraud allegations, it said.These, along with measures on refunds, input tax credit and compliance simplification, could improve working capital efficiency and reduce avoidable disputes.

CII said the GST Council's experience offered a framework for the next generation of reforms, where the challenge would increasingly lie in aligning policies and administrative processes across different tiers of government.It also called on industry to match the shift towards trust-based regulation with stronger internal controls, documentation and voluntary compliance, particularly among MSMEs.(You can now subscribe to our Economic Times WhatsApp channel)