should address ‘teething troubles’ haunting exporters under GST said Mr
Chandrajit Banerjee,Director General, CII on 28th Sept. Mr
Banerjee reeled out the GST reforms wishlist for Export Import(EXIM) community
including Payment of IGST for imports under Advance Authorisation, EPCG and on
advance receipts adds to credit requirements of manufacturers and raises
costs. All import duties including IGST should be allowed to be debited
under Advance Authorization as the authorization is utilised for self and the
finished goods manufactured from imported material is exported. Further,
advance receipts for exports should be exempted from payment of IGST, Suggested
important issue is that under VAT/CST, merchant exporters could purchase goods
without payment of tax on furnishing of a declaration form. This provision
needs to be added under the GST law so that refund of tax is faster and
capital is not held up. Currently, the tax for inputs for exports is needed to
be paid directly even though provision for refund is provided. Further, delays
in filing of GSTR 3 should be addressed for quick refunds of IGST paid on
exports, stated Mr Banerjee.
Services Tax (GST) was implemented on 1 July, 2017 with a view to create a
common national market by amalgamating multiple central and state taxes into a
single tax regime. Implementation of GST across the country has been a success
so far, barring initial technical GSTN hiccups, which have also been addressed.
Payment of tax on a single GSTN platform, seamless flow of input tax credit
(ITC) and removal of various state barriers for smooth movement of goods across
Sates is the mainstay of the GST reform; commended Mr Banerjee.
the roll out of GST, Director General, CII stated that since the launch of GST,
Government has left no stone unturned and the GST Policy Wing, GST Council and
senior officers of the CBEC have been proactively engaging with the industry in
spreading the awareness in terms of issuing FAQs, issuing clarifications and
addressing concerns of the industry with the intent to help implement GST.
Several CII requests have been considered to fine-tune GST Law, tweaking GST
Rates and clarifying provisions, which are indeed helpful in successful
transition to GST, he said.
need to handhold the industry, especially the MSME sector, emphasized Mr
Banerjee. For ease of doing business especially for the MSME, provisional
Input tax credit period may be extended to 6 months from the current 2 months’
period; this will help cross matching of invoices through the GSTN portal and
also save the blockage of the working capital for the small players, said CII
Filing of GST
Return may be made on a quarterly basis, as against the current monthly filing
requirement as the MSME sector is still not well equipped with the IT
infrastructure and a qualified manpower; this small measure will help bring
them into the GST mainstream, emphasized Mr Banerjee.
Another issue which needs
attention is the reverse charge mechanism (RCM). Under RCM, threshold exemption
for payment of tax may be increased from the present Rs. 5000/- to
50,000/- which shall help ease burden of excessive compliances especially for
the MSME players. Format of Returns may also be simplified and only basic core
details may be required to be furnished, suggested Mr Banerjee