The proposal seeks to address a longstanding industry demand by examining whether businesses operating across multiple states can be administered by a single central GST authority instead of dealing with multiple field formations for different GST registrations.
The 11-member panel, headed by chief commissioner Vinayak Chandra Gupta, will examine the legal, administrative and technological changes needed to implement such a framework.
It will also study the erstwhile centralised registration and Large Taxpayer Unit (LTU) mechanism under the excise and service tax regime, review international practices, and recommend whether the proposed framework should be optional or mandatory.
The panel has been asked to submit its report, along with a detailed implementation roadmap and draft proposals, within 30 days, indicating that the government is moving quickly on a reform that has been under discussion for several years.
Industry experts said the move could significantly reduce compliance costs and administrative complexity for companies with a pan-India presence.
“Moving to a centralised administration for GST taxpayers having operations in multiple states across the country would be a significant step in reducing GST compliance and audit challenges faced by them,” said MS Mani, partner, Deloitte India.