The Goods and Services Tax (GST) is expected to get a new reform that will be more extensive than the changes made so far to straighten out hurdles in making GST compliant and less burdensome. The GST Council has designed a new advisory team that incorporates industry delegates to peek into the GST related issues. According to Experts, these changes may be put to input tax credit rather than a place of supply and evaluation provisions.
The advisory group will generate the report to the council’s law committee by 30 November. Further, this report will be assessed by law committee for review and then passed on to the GST council for quick actions. A government official said in this regard, “A group has been set up to give feedback about the issues faced by industry with regard to laws, rules, and procedures.”
The action is taken in addition to amendments introduced to the composition scheme to render comfort to small businesses and traders. The proposals can be accepted by the GST council at the recent meeting which is going to take place on November 10 in Guwahati. It is expected that some items can get rate tweaks from 28% to 18% in this meeting.
So far, many traders complained against the biggest tax reform which was taken place on July 1 and positioned over many central and state taxes. The taxpayers have mentioned in many statements to the GoI to simplify various rules.
From the important points that can be presented in an amendment are the provisions that relate to input tax credit, invoices, information about a service provided places and how to calculate a value of goods and services for taxation concerns. The panel will include Gautam Ray (former revenue service officer) designated in a panel as a co-convener and adding delegates of retails and small businesses.
The advisory panel will consider the central, state and integrated GST provisions and hurdles being faced by taxpayers due to them. Pratik Jain, indirect tax leader at PwC said, “Till now, the changes have been carried out by way of notifications and instructions.” In addition, he said, “There is a need to do a comprehensive review of changes required in the legislation as well, based on issues that have already been highlighted by industry.”
On Sunday, The PM informed that the centre will bring more solutions to simplify the hurdles being encountered by small business. In the last 22nd meeting of GST council, rules were amended and threshold cap under composition scheme is enhanced from Rs. 75 lakh to 1 Crore. The new assembly of ministers also set up under the observation of finance minister Himanta Sarma to clearly judge the issues concerning taxation under the composition scheme and GST rates for restaurants. It is expected that GST council will reduce the flat tax rate for small businesses utilizing the composition scheme from existing 1% to 0.5%, considering taxable and exempted supply of goods in respect to their turnover.
