Economy

GST implementation: Industry keen on resolution of glitches, addressing concerns

V. Rishi Kumar Hyderabad | Updated on July 04, 2018 Published on July 04, 2018

Expect further rationalisation of slabs

 

 

After a year of GST implementation, which has generally settled and described as “Work in progress,” industry players feel the need for further rationalisation of slabs and addressing the implementation related glitches.

These concerns relate to availing input tax credit, uncertainty in relation to valuation of related party transactions, specially which are without consideration, difficulties in implementation of E-way bill system in some situations, according to Nihal Kothari, National Council on Indirect Taxes, Assocham.

Speaking on the sidelines of an interactive meeting on GST hosted here, he told Business Line, “While it is heartening to note that Central and State Governments as well as the GST Council have demonstrated a pragmatic approach in resolving the operational issues, the expectations of trade and industry from GST are yet to be fully met.”

“Technical difficulties faced by tax payers at times of filing of returns, export related issues including tax refund of tax paid, lack of guidelines for anti-profiteering provision, which as been invoked in several cases, have all caused problems,” he said.

He explained there are several interpretive issues referred to advanced ruling authorities where contradictory rulings have been issued and there are no appellate authorities in several States. “Therefore, GST is still work in progress,” he said.

“Over the past one year, the Government aided by the GST Council has rationalised taxes and this has to a large extent been positive to the industry as also the consumers. However, we need to further rationalise and bring down the number of tax slabs. To start with there is immediate need to bring cement and paints in the 18 per cent slab from 28 as these are consumed by both rich and the poor,” Kothari said.

“At the macro level, we believe that the revenue will get boosted up further and allow the Government to be more flexible and rationalise the number of slabs,” he felt.

“The monthly revenue collection from GST has reached more than Rs 95000 crore, close to the targeted figure of Rs 1 lakh crore per month and this would offer flexibility for the Government to further rationalise slabs,” he said.

Somesh Kumar, Principal Secretary, Commercial Taxes, Telangana, said, While GST would get 10 out of 10 for implementation, there is one problem of glitches in the network which could be a cause for concern for filers.”

Gowra Srinivas, President of Ftapcci, said “Glitch in the network is a matter of concern as even for those who have filed returns, it is not reconciled and then the authorities seek late fee to reload along with penal interest. This could be addressed by creation of a wallet.”

“We continue to articulate our case to look at the problems of small and medium enterprises, who do not have the advantage of falling back to huge resources,” Gowra said making a case for further rationalisation of slabs.

Published on July 04, 2018
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