GST Taxpayers Demand Rate Rationalisation and Amnesty Scheme

GST Taxpayers Demand Rate Rationalisation and Amnesty Scheme

As GST marks its seventh anniversary, taxpayers are calling for the rationalisation of rates, faceless dealings with authorities, and an amnesty scheme, according to a survey by a leading consulting firm.

The top demand for GST 2.0 is “rationalising GST rates across sectors, focusing on removing the inverted duty structure,” the survey revealed. The GST Council is set to meet on Saturday to address several issues.

Rate rationalisation, including reducing the number of slabs, has been a long-standing agenda. However, both the Centre and states have delayed the decision due to the potential need to increase rates on some goods and services. The merging of the 12% and 18% slabs to around 16-17% is a possibility, but higher rates on several products could be politically sensitive. Correcting the inverted duty structure, where finished products attract lower levies than their inputs, is seen as an easier issue to address.

The survey, which included 760 respondents from small and large businesses, highlighted the problems tax audits pose across segments, with multiple actions by state and central authorities. It also stressed the need to remove restrictions on the use of input tax credits, which were imposed due to fraud. Additionally, some businesses requested measures to reduce the working capital locked up under the current system.

Taxpayers also called for an amnesty scheme to resolve disputes that have arisen over the past seven years, many of which are technical in nature.

Liked the post? Share this:
editor
editor@nyca.in
No Comments

Post A Comment

Disclaimer

We have taken all steps to ensure that the information on the website has been obtained from reliable sources and is accurate. However, this website is not intended to give legal, tax, accounting or other professional guidance. We recommend appropriate advice be taken prior to initiating action on specific issues.