News: Experts say GST Council’s registration and dispute reforms could ease compliance burden for developers-09-10-2026
Process reforms approved by the 57th GST Council, including simpler registration, could ease life for real estate developers, especially those expanding across states, experts said.
On October 8 the Council approved measures such as simpler registration and system-driven approval of most amendments to registration particulars. It also proposed changes to dispute resolution, including better-quality and timely notices and orders, justification for alleging fraud, adherence to natural justice and lower penalties in non-fraud cases.
Harpreet Singh, partner, indirect tax, Deloitte, said clear documentation rules, auto-approval of amendments and system-driven cancellation would cut uncertainty for builders operating in several states. He added that the sector has faced disputes over joint development agreements, transfer of development rights, plotted projects and input tax credit (ITC), and that standardised adjudication, a threshold for low-value disputes and rationalised penalties should reduce litigation. The significance, he said, lies more in consistent administration than in any rate change.
Saurabh Agarwal, Tax Partner, EY India, said the alternate mechanism for availing ITC, so genuine taxpayers do not lose credit when a supplier fails to deposit tax, is a big boon for real estate.
The Council recommended withdrawing arrest powers completely and cut the general default penalty from Rs 25,000 to Rs 10,000. Brijesh Kothary, Partner at Khaitan & Co, said GST is moving from deterrence to detection, with the prosecution threshold rising from Rs 1 crore to Rs 5 crore.
Yash Garg, Director, M3M Noida, said faster refunds and smoother ITC would reduce working-capital blockages and help developers plan projects. He said the Council’s next phase of reforms would improve ease of doing business.
