The centre is over-viewing the GST structures for small business and may allow them to file the quarterly returns instead of monthly GST returns. The positive side of consideration is that the small businesses are in lack of professional help and cannot bear the burden of an accountant as the GST system is all new and understanding for GST system is very less among small businessmen. The government is thinking to modify the threshold limit for small firms to lessen their hurdles.
A Sound Discussion In A Meet Attended By Finance Minister
Chandrajit Banerjee, DG at CII said, “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.”
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The issue was raised in a meeting held on for GST related problems and Federation of Indian Export Organization (FIFO) demanded the exemption for merchant’s exports under GST. FIFO said in a statement that the merchant export in India covers the 30% of the export market and they are relying on the profit margin of 2-4%, but after GST imposition and due to the higher tax rate on certain products, they are not able to comfort under GST.
FIFO also wants the GST refund system to be fast & quick so that merchants don’t have to face money shortage crises in a business.
CII Suggestions On Particular Issue
CII is concerned about the system where the MSME category businesses in seek of financial assistance for filing GST as they are not getting the refunds in meantime.
CII further said, “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.”
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He again showed the courtesy of the GST system for revision in threshold limit for exemption of tax payment under RCM, which has increased from present 5,000 Rs. to 50,000 Rs. for MSME players.
