AP Chambers hails GST relief, seeks tax rationalisation

The AP Chambers of Commerce and Industry Federation has welcomed the 57th GST Council’s recommendations to simplify compliance, reduce penalties, and expedite refunds, while seeking tax rate rationalisation in key sectors.

Chamber President Potluri Bhaskara Rao said raising the prosecution threshold from ₹1 crore to ₹5 crore, cutting the general penalty to ₹10,000, and removing arrest provisions would ease pressures on MSMEs.

“Provisional sanction of 90 per cent eligible refund claims and automated cash ledger refunds will ease working capital crunch,” he said, adding that expanded ITC rules and simplified e-commerce registration were also welcome steps.

However, the Chamber urged rate cuts for food processing, textiles, garments, and hospitality. Pointing out that fruit-pulp carbonated drinks lack tax parity with chemical alternatives, Mr Rao said lower GST would curb crop wastage and aid horticulture farmers.

He also sought lower tax on association membership fees and exhibition participation to boost regional trade and employment.