Fractured ‘GST’ not sustainable in India, needs overall review: CAIT

Fractured ‘GST’ not sustainable in India, needs overall review: CAIT
Fragmented procedures and compliance have greatly distorted the inherent beauty of goods and services tax (GST). The experience of about nine months of GST implementation in the country requires an overall review of not only the tax rates but even the prescribed procedures as well, says a trader’s body.
In a statement, Confederation of All India Traders (CAIT), says, “Weaknesses, leakages, loopholes of GST needs to be plugged. For widening of tax base and encouragement to voluntary compliance, three is a need for rectification of error in classification of goods in different tax slabs particularly under tax slab of 28% and removing anomalies and disparities. This will make GST a simple and good taxation system.”
An internal panel of CAIT headed by its National President BC Bhartia feels that the government should be more open to communicate with the traders. “No direct communication from the Government with trading community so far is the root cause for chaos and confusion. To create a permanent mechanism, there is a need for regular inter-action between both at Centre and State governments and traders,” the Panel added.
According to the traders’ body, several factors are multiplying uncertainty about GST and the government need to initiate steps to address these issues. This includes, proper functioning of GST portal, overlapping of laws, short term measures to provide relief, 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 and absence of any nodal authority to provide legitimate answers.
Some of the immediate measures suggested by Mr Bhartia and Praveen Khandelwal, Secretary General of CAIT, includes abolition of reverse charge mechanism, application of e-way bill only on inter-state transactions, quarterly returns for turnover up to Rs100 crore and monthly return for turnover of more than Rs100 crore turnover.
Source : https://www.moneylife.in/article/fractured-lsquogstrsquo-not-sustainable-in-india-needs-overall-review-cait/53851.html
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