Revenue Secretary recently stated that GST rates will be revised.
What is the recent behind such move?
After the roll out of GST small and medium businesses and the common man face are facing ‘a big burden’.
Union government recently announced the composition scheme threshold has been extended to Rs.1 crore, keeping reverse charge in abeyance.
It also allows units below an annual turnover threshold of Rs.1.5 crore to file quarterly returns.
Rates of over two dozen items were reset, taking such rate changes since July 1 to over 100 while some procedural and compliance-related norms were eased.
This move in GST rate structure is needed, in view of the impact on small business.
Union government is clear that rules and rates need to be tweaked to ensure that the economy gets back on the rails.
These latest statements displays union government’s commitment to fix the flaws in the new tax regime, to address the woes of small businesses and exporters.
What are few GST concerns needs to be addressed?
Many measures announced haven’t been implemented swiftly enough refunds to exporters.
There is a stringent requirement for matching invoices in order to allow input tax credits, which is impeding the uptake of the new tax.
Excessive tinkering with rates indicates that the initial levies were not thought through.
High rate structures have driven out small and medium enterprises and entire product categories are under threat of disappearing.
The Government had failed in sorting out design issues in GSTN, which includes difficulties arising out of matching invoices, facilitate the filing of periodic summary returns.
This has contributed to delays in uploading returns, given the unreliable internet speed in many parts of the country, for which the enterprise pays a penalty.
