New Delhi, Nov. 9 -- Changes to GST demand and penalty provisions proposed during the 57th GST Council meeting could ease the compliance burden on micro, small and medium enterprises (MSMEs) by limiting proceedings over minor tax disputes and ensuring more proportionate penalties, according to the Federation of Indian Micro and Small & Medium Enterprises (FISME).

The reforms recommended at the 57th GST Council meeting, including reducing the general penalty, raising the prosecution threshold and modifying arrest and notice provisions, are scheduled to take effect from April 1, 2027, subject to formal legislative enactments and notifications.

The industry body highlighted that contesting even small tax demands can involve professional fe...