World Msme Forum Welcomes Decisions Of The 57th Gst Council
Oct8,2026
| Jagrati Lahar Bureau | Chandigarh
But the finance minister missed any decision of very important issue of section
16(2) and the issue of delay in refunds by State GST Departments.
PASSING MAFIA WILL END WITH THE DECISION OF POLICY FOR INSPECTION OF
GOODS
Ludhiana, October 8, 2026: The World MSME Forum (WMSME) has wholeheartedly
welcomed the landmark decisions taken by the 57th GST Council under the
chairmanship of Union Finance Minister Smt. Nirmala Sitharaman,
We were expecting a decision of section 16(2) which was a major disturbing issue
for lakhs of honest MSME’s. We were expecting a unanimous policy of refunds for
State & Central GST department, these decisions were missing in the
announcement by Finance Minister.
Badish Jindal, President, World MSME Forum, stated that the latest reforms
demonstrate the Government of India's commitment to creating a transparent, trust-
based and business-friendly tax regime. The decisions are expected to provide
substantial relief to millions of Micro, Small and Medium Enterprises (MSMEs),
exporters, transporters and honest taxpayers across the country.
The World MSME Forum particularly welcomed the following key decisions:
Removal of the power of GST officers to arrest taxpayers, thereby reducing
fear among genuine businesses and encouraging voluntary tax compliance.
Increase in the prosecution threshold from ₹1 crore to ₹5 crore, ensuring
that criminal proceedings are reserved only for serious tax frauds instead of
procedural or technical disputes.
Measures to simplify GST registration and compliance, making it easier for
new businesses and MSMEs to enter the formal economy.
Faster and technology-driven GST refund mechanisms, which will
significantly improve the liquidity of exporters, manufacturers and small
enterprises.
Reforms relating to Input Tax Credit (ITC) to reduce unnecessary litigation
and provide greater certainty to genuine taxpayers.
Simplification of export-related GST procedures, which is expected to
improve India's export competitiveness and reduce working capital blockage.
No increase in GST rates, providing stability to businesses and consumers at a
time when global inflationary pressures and geopolitical uncertainties continue
to affect the economy.
The World MSME Forum also welcomed the GST Council's move towards making the
verification of goods in transit more intelligence-based instead of routine physical
interceptions. The Forum observed that for several years, transporters, manufacturers
and traders have been facing unnecessary hardship due to repeated stoppage of goods
vehicles at multiple checkpoints, prolonged detention of consignments, overlapping
inspections by different authorities and avoidable delays in transportation.
The proposed reform, under which vehicles may be intercepted only on the basis of
credible intelligence and with prior authorization from senior officers, is expected to
significantly reduce harassment of honest taxpayers while ensuring that enforcement
agencies continue to act effectively against genuine cases of tax evasion.
While welcoming the historic taxpayer-friendly decisions of the 57th GST Council, the
World MSME Forum expressed disappointment that no final decision was taken on the
long-pending issue relating to Section 16(2) of the CGST Act, one of the most
significant concerns affecting lakhs of genuine taxpayers across the country. The Forum
stated that the MSME sector was eagerly expecting a comprehensive resolution on this
issue during the 57th GST Council meeting. Instead, the matter has reportedly been
referred to a committee for further examination, thereby delaying relief to honest
businesses.
The World MSME Forum also urged the GST Council to establish a uniform, time-
bound GST refund mechanism across all States. Badish Jindal, President, World
MSME Forum, stated that GST was introduced as "One Nation, One Tax", and therefore
the refund process should also operate under uniform national standards. The Forum
said that while refund processing has improved in several jurisdictions and the 57th
GST Council has emphasized faster refunds and ease of doing business, businesses in
some States continue to report significant delays in receiving legitimate GST refunds.
The Forum specifically stated that industries in Punjab have represented that refund
claims are, in many cases, being held up for four to five months, with officials citing
scarcity of funds as a reason. The World MSME Forum urged both the Central and State
Governments to ensure that genuine refund claims are not delayed due to fiscal
constraints, as GST is a destination-based national tax and timely refunds are essential
for maintaining MSME liquidity and working capital.
Badish Jindal stated that for several years, industry associations had been requesting
the Government to distinguish between intentional tax evasion and procedural or
technical compliance issues. The latest decisions move India towards a modern, trust-
based taxation system where honest taxpayers are treated as partners in nation-
building rather than suspects.
He further said that MSMEs contribute nearly one-third of India's Gross Value Added
(GVA), around 45% of manufacturing output and a significant share of exports. Any
reduction in compliance costs directly improves their competitiveness, encourages
investment, generates employment and strengthens India's manufacturing ecosystem. The World MSME Forum also appreciated the GST Council for emphasizing ease of
doing business, digital governance, faster refunds and simplified procedures
instead of imposing additional tax burdens. These reforms will particularly benefit small
manufacturers, exporters, traders, transporters and service providers who often face
working capital constraints due to delayed refunds and procedural complexities.
However, the Forum requested the Government to continue the reform process by
considering additional measures such as:
Complete protection of genuine buyers in Input Tax Credit matters where
suppliers default despite bona fide transactions. Sections 16(2)
Further simplification of GST return filing and documentation for MSMEs.
Reduction in unnecessary notices and departmental litigation.
Time-bound disposal of refund claims through complete digital automation by
states.
Wider consultation with MSME organizations before introducing future GST
amendments.
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