CII calls for GST-like reforms in land, labour & local approvals
Benchmarks Nifty23,053.10116.35FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return9.02 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.55 % Invest NowEnter search…
CII has called for extending the GST Council's approach to decriminalise offences in various sectors. This move aims to enhance ease of doing business and attract investments in land, labour, and construction. The organisation emphasizes the importance of simplifying regulatory processes across different government tiers.
New Delhi: The Centre and states should extend the approach adopted by the Goods and Services Tax Council in decriminalising certain GST offences to areas such as land, labour, construction and local approvals to reduce compliance costs and accelerate investments, industry body CII said.The Confederation of Indian Industry (CII) said the GST Council's decisions at its October 8 meeting marked a shift towards trust-based governance and demonstrated how the Centre and states could overcome differences to deliver institutional reforms through consultation and consensus.
The next phase of reforms, it said, should focus on simplifying land-use regulations, speeding up construction permissions, streamlining labour administration, facilitating utility connections and reducing the multiplicity of local regulatory approvals - areas that constrain investment, manufacturing and enterprise growth.
Businesses often face overlapping requirements, multiple authorities and inconsistent procedures across states, adding to project costs and implementation timelines, it noted. "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 Events
CII 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.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onGST reformsland labour reformsConfederation of Indian Industrygoods and services tax councilgst councilconstruction permissionsease of doing businessCIIMSMEs
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onGST reformsland labour reformsConfederation of Indian Industrygoods and services tax councilgst councilconstruction permissionsease of doing businessCIIMSMEs Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition
Some elections matter more than you know: No crop changed in the fields, yet sugar, coffee and soya got cheaper in a day
You can buy a walkie-talkie online. But can you legally use it?
KYB and KYC: Quick commerce, the Damani premium and what DMart must deliver – 3rd and concluding part
KYC and KYB: Inside Damani’s DMart, the retail chain for the middle class. And stock for the long term? – Part 2 of 3
Will it be a regulatory nightmare if an exchange lists on its own platform?
KYC and KYB: Inside Damani’s Avenue Supermarts that refuses to charge more – Part 1 of 3
- 1
- 2
- 3
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
