GST has to be Reworked to Reduce the Burden on Small and Medium Businesses: Hasmukh Adhia

The revenue secretary, Hasmukh Adhia in New Delhi has said that the GST rate structure needs to be reorganised to minimize the burden on small and medium businesses."There is need for some rejig in rates... it is possible that some items in the same chapter are divided. There is a need for harmonisation of items chapter wise and wherever we find there is a big burden on small and medium businesses and on common man, if we bring them down, there will be a better compliance," Adhia said.Even after four months of the introduction of the tax regime, it has been causing  troubles and other compliance issues. The GST Council, which is the highest decision-making body of the indirect tax regime has also made several rounds of changes.The GST regime incorporates a dozen central and state levies service tax, excise duty and VAT which will take at least about a year to get settled, he told PTI.To ease the inconvenience caused by the small and medium businesses in filing GST returns and paying their taxes, there are many adjustments made to make it industry-friendly.The GST Council has also made more efficient pricing on 100 commodities and aided the exporters by making the refund process easier. However, Adhia explained that rejig would definitely be a time-consuming process as there are some calculations to be done by the fitment committee, which will analyse and decide upon the rates and the items which need to be rationalised under the indirect tax regime, which has come into power from July 1.The GST Council has gone through the approach paper and has also sorted the items to be marked for rationalisation, but if it is unalterable, the council always has the option to make deviations from the approach paper. "We are very keen to do it as early as possible, it depends on how much time the fitment committee takes to work on it. They need data, calculate revenue loss. They need various comparisons. But harmonisation has to be done," he said.The 23rd meeting of the GST Council held on November 10 in Guwahati, comprised of representatives from all the states, chaired by Union Finance Minister Arun Jaitley.There has been a hike from RS 75 lakh to 1 crore for the composition scheme, where the businesses can make tax payments at a nominal rate. Even the small businesses with a turnover of 1.50 crore are permitted to file and make tax payments quarterly, as against the monthly payments being made earlier.When questioned as to how much time will it consume to stabilise the GST regime, Adhia replied: "It will take one year. Because it is a new system for everybody... There has been a complete overhauling of tax system in GST, so one year is needed."The GST has been beneficial in subsuming more than a dozen taxes and also helped in transforming India into a single market for an uninterrupted movement of goods and services.
Kranthi Tilak Reddy
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GST has to be Reworked to Reduce the Burden on Small and Medium Businesses: Hasmukh Adhia

Kranthi Tilak Reddy
News Article
24th Oct, 2017
GST has to be Reworked to Reduce the Burden on Small and Medium Businesses: Hasmukh Adhia

The revenue secretary, Hasmukh Adhia in New Delhi has said that the GST rate structure needs to be reorganised to minimize the burden on small and medium businesses.

"There is need for some rejig in rates... it is possible that some items in the same chapter are divided. There is a need for harmonisation of items chapter wise and wherever we find there is a big burden on small and medium businesses and on common man, if we bring them down, there will be a better compliance," Adhia said.

Even after four months of the introduction of the tax regime, it has been causing  troubles and other compliance issues. The GST Council, which is the highest decision-making body of the indirect tax regime has also made several rounds of changes.

The GST regime incorporates a dozen central and state levies service tax, excise duty and VAT which will take at least about a year to get settled, he told PTI.

To ease the inconvenience caused by the small and medium businesses in filing GST returns and paying their taxes, there are many adjustments made to make it industry-friendly.The GST Council has also made more efficient pricing on 100 commodities and aided the exporters by making the refund process easier.

However, Adhia explained that rejig would definitely be a time-consuming process as there are some calculations to be done by the fitment committee, which will analyse and decide upon the rates and the items which need to be rationalised under the indirect tax regime, which has come into power from July 1.

The GST Council has gone through the approach paper and has also sorted the items to be marked for rationalisation, but if it is unalterable, the council always has the option to make deviations from the approach paper.

"We are very keen to do it as early as possible, it depends on how much time the fitment committee takes to work on it. They need data, calculate revenue loss. They need various comparisons. But harmonisation has to be done," he said.

The 23rd meeting of the GST Council held on November 10 in Guwahati, comprised of representatives from all the states, chaired by Union Finance Minister Arun Jaitley.

There has been a hike from RS 75 lakh to 1 crore for the composition scheme, where the businesses can make tax payments at a nominal rate.

Even the small businesses with a turnover of 1.50 crore are permitted to file and make tax payments quarterly, as against the monthly payments being made earlier.

When questioned as to how much time will it consume to stabilise the GST regime, Adhia replied: "It will take one year. Because it is a new system for everybody... There has been a complete overhauling of tax system in GST, so one year is needed."

The GST has been beneficial in subsuming more than a dozen taxes and also helped in transforming India into a single market for an uninterrupted movement of goods and services.

Kranthi
Blog Author

Kranthi Tilak Reddy is one of the co founders and COO of White Matter Advisory services P Ltd. He is an Engineering graduate from SRM University and has done his Masters in finance.Being a true go-getter and an optimist to the core he has grown up the ranks in banking industry at an astonishing rate, his last stint being Associate Director, Business Clients -South with Standard Chartered Bank. With over 10 years of association with SME businesses and clients he certainly brings rich vein of expertise to the WMA table but more importantly his alluring passion towards great and customer service” the foundation on which he asserts WMA has been built.

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