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FICCI Says Compliance and GSTN Hitches Mar the GST Success

FICCI Says Compliance and GSTN Hitches Mar the GST Success

A survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) to evaluate success of GST implementation gave varied feedback. More than 50% of the respondents that included MSMEs and corporate organizations stated a positive effect on business logistics as transportation of goods between states was greatly facilitated due to reduction in processing time at check posts.

FICCI Says Compliance and GSTN Hitches Mar the GST Success

However, FICCI stated that the GST success was marred by certain hitches, the main being with regard to the efficiency of the GST portal. Lack of immediate reflection of latest data and uploading of large and varied files, greater times for giving effect to set-offs of input credit and inability for providing for modification or revision of errors were some of them. There were some other issues too. Businesses found the monthly filing of returns by taxpayers with total turnover exceeding Rs 1.5 crore a cumbersome activity. Filing of multiple registrations by service providers was a headache. The distance limit of 10 km for keeping details of goods movement posted on the portal was too less. Claiming of refunds by exporters was a tedious chore. Goods meant for captive consumptions were levied GST.

Suggestions to tackle the above were offered by respondents. A majority of respondents suggested the GST return filing periodicity to be changed to quarterly. Centralized registration was suggested for service providers to tackle provision of services between states. A hike in distance limit to 50 km as a minimum requirement for updating details on the movement of goods along with elimination of updating needs for goods moving within limits of the city. Small businesses deemed the e-way bill as an extra compliance necessity. GST on transfer of goods meant for captive consumption to be scrapped. In order to facilitate exporters in getting their refunds the pre-requisite of tallying the date of the shipping bill with that of the tax invoice should be removed.

Additionally, many respondents wanted greater clarity on the provisions of anti-profiteering so as to avoid unjustified harassment occurring on that issue.

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