New Delhi, Nov. 10 -- The government is considering changes to the treatment of penalties in non-fraud-related Goods and Services Tax (GST) cases to provide relief to businesses and reduce their compliance burden.

Under the proposed framework, penalties imposed on taxpayers who settle their tax dues and interest within the prescribed timeframe may be classified as charges rather than penalties, potentially allowing businesses to claim them as business expenses while computing income tax liability.

The proposed reclassification could also help businesses avoid adverse implications during credit assessments by banks, as penalty entries in financial statements may indicate compliance deficiencies.

Proposed Changes To Reduce GST Penalties...