A year after
the introduction of the historic revolutionary tax regime, Goods and Services
Tax (GST), it is but proper that the effect of GST, adverse and advantageous,
must be looked into for the interest of the industry and of the common people.
A very intricate complex tax system which is purportedly implemented in haste
as it is pointed out by many experts is likely to have some issues still
needing attention and redressal.
Federation of Freight Forwarders’ Associations in India (FFFAI) has come out
with a fair and just analysis of GST and its impact on the industry. First of
all, it highly commends the government of India for its
firmness to implement the much-delayed tax reform from July 1, 2017. It has
positively impacted the manufacturing, ex-im trade and logistics industry. The
introduction of E-way Bill has further enhanced the transport sector’s
efficiency and the removal of check posts has definitely improved transit times
and consequently rationalised costs. But it is found that some of erstwhile
check ‘nakas’ are not very happy with the measure and try to create hurdles by
random stoppage of trucks, especially of consolidated movements, it pointed out
in a release.
some areas of concern that require to be addressed. "After completion of
one year of GST, we can say that it has matured to a great extent in terms of
filing of returns. However, for services sector, export services have not been
defined adequately. For example, refund application for similar export service
is viewed differently by officials at different locations, resulting in
unnecessary review applications," said Mr S. Ramakrishna, Vice-Chairman,
maintained that the concept of GSTR-1, 2 and 3 should have been continued so
that auto reconciliation through the system could have happened. He urged for
doing away with human intervention, which is, in fact, the intention and vision
of the present government at the Centre. "Issues pertaining to taxes on
goods are more or less resolved and are being settled in the regular GST
Council meetings. Our sincere request to the Council is to redefine the export
services so that there is no scope of ambiguity and hassles to service
providers," the FFFAI Vice-Chairman appealed.
It is also
pertinent to mention that the technology support from GSTN, which is the
backbone to successfully implement and carry out the tax revolution in India,
has to be well-structured and streamlined. "As the Finance Secretary of
India, Mr Hasmukh Adhia, assured in his very recent statement, we are looking
forward to the next GST Council meeting for some pragmatic decision on service
sector, GSTN and other issues," Mr Ramakrishna added.