The AP Chambers of Commerce and Industry Federation (APCCIF) urged Nirmala Sitharaman, Union finance minister, to announce a plan to cut compliance costs and lower business costs, which would increase exports.
APCCIF president Pydah Krishna Prasad provided feedback and recommendations for the Union Budget 2023–24 in a letter to the Finance Minister. The federation demanded, among other things, that the penalty rate for GST be reduced from the current 18 to 24 per cent to 12 per cent.
He pointed out that although the government only had to pay 6% in the case of a GST refund while the penalty rate for paying late GST ranged from 18 to 24%. The penalty rate ought to be decreased to 12% to correspond with the IT division.
Read Also: Budget 23-24: EEPC Expects Low Rate for LLPs, Exemption for MSMEs
Even more so when contracts are completed against State, Central, or Public Sector employees, whereby invoices are sent, regardless of whether the Bill is received or not, the payment of GST, when the payment is not received against the invoice, is a financial burden on the firm. The federation demanded that the GST be due immediately upon receiving payment.
The additional proposals consist of- A single GST rate within the global norms, automatic insurance cover for all MSME exporters, raising the personal IT exemption limit to Rs 6 lakh, the share of ESI and PF of companies, which are spending on expansion, which must be taken through the Central government for 3 years, promotion of green energy by diminishing the taxation on green technologies, more incentives beneath the vehicle scrapping policy, creation of Multi-Level Parking in the smart cities to diminish congestion, incentives to exporters for boosting exports and construction of new railway lines for Vande Bharat trains with massive spending on the refinement of rail infrastructure.
