CAIT calls for overall review of GST

Source: The Hitavada      Date: 25 Oct 2017 10:03:31


Business Bureau,

Fragmented procedures and compliance have greatly distorted the inherent beauty of Goods and Services Tax (GST). The experience of about four months of GST implementation in the country requires an overall review of not only the tax rates but even the prescribed procedures as well. Weaknesses, leakages, loopholes of GST needs to be plugged. Correction of error in classification of goods in different tax slabs particularly under tax slab of 28 per cent beside removing anomalies and disparities to make it a simple and good taxation system which may comply with two basic fundamentals of GST i.e widening of tax base and encouragement to voluntary compliance, said Confederation of All India Traders (CAIT).

An internal panel of CAIT headed by its National President B C Bhartia has recommended that now the time has come when the Government should move forward to make GST a stable taxation system by conducting an overall review of GST structure and take remedial measures. “No direct communication of the Government with the trading community so far is the root cause for chaos and confusion and as such a permanent mechanism needs to be formed to make regular interaction both at Centre and State levels,” Bhartia said.

With GST portal not functioning properly, overlapping of laws, short-term measures to provide relief, much lack of awareness about prescribed fundamentals and compliance thereof, variation of tax rates in items pertaining to same vertical, applicability of HSN code for everyone whether big or small, absence of any nodal authority to provide legitimate answers to the queries have multiplied uncertainty about GST and as such it will be appropriate if immediate steps are taken to set the things right, he noted.

Khandelwal said that CAIT panels had suggested some immediate measures including abolition of Reverse Charge Mechanism, application of E Way Bill only on inter-state transactions, quarterly returns for turnover upto Rs 100 crore and monthly return for turnover of more than Rs 100 crore turnover, applicability of HSN Code only on manufacturers, no tax liability on purchaser if seller does not deposit tax collected by him, formation of a GST LokPal, representation to traders in GST Council, formation of joint committee of Government officials at Centre, State and District levels to monitor and regulate GST system, revisiting 28 per cent tax slab which should be limited to only luxurious and demerit goods, re-classification of goods falling under other tax slabs, no penal action till 31st March 2018 for late filing of returns or other genuine issues.