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GST good for logistics but glitches, compliance concerns: Ficci
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SME Times News Bureau | 19 Feb, 2018
Implementation of the Goods and Services Tax (GST) has had a positive
impact on the logistics of businesses, while glitches in the GSTN
portal, cumbersome procedures and cost of compliance remain major areas
of concern, industry body Ficci said on Sunday, citing its survey in
this regard.
The Federation of Indian Chambers of Commerce and
Industry (Ficci) had conducted a survey on the experiences of micro,
small and medium enterprises (MSMEs), as well as large corporates, on
the first six months of the GST which was rolled out from July 1.
"More
than 60 per cent of respondents stated that their experience with
respect to inter-state transportation of goods has been good in terms of
check-posts," a Ficci release said here.
"More than 50 per cent
of respondents mentioned that goods vehicles are no longer stopped and
checked at state borders, and 59 per cent respondents have cited
reduction in transportation time after GST has been implemented."
"Amongst
the key issues faced with respect to GST implementation, the industry
has highlighted glitches in GSTN portal, cumbersome procedures and
documentation and cost of compliance as the major areas of concern that
need to be addressed," it added.
According to Ficci, all the
respondents of the survey pointed out issues with the robustness and
volume handling capacity of the GST portal.
"Problems like
delayed reflection of updated data as well as payments, delays in
process of input credit set-offs, inability to upload heavy files of
certain formats and lack of provision to modify or revise errors posed
major challenges to businesses.
"Respondents suggested that a
major revamp of the portal was necessary to make it more efficient.
There should be provisions for auto set-off of the liability against
available credit."
Monthly filing of GST returns has been cited as a "cumbersome procedure", according to the industry chamber.
"Around
78 per cent of the respondents suggested that the periodicity of return
filings for those taxpayers having aggregate turnover above Rs 1.5
crore should be changed from monthly to quarterly," the statement said.
"For services providers, multiplicity of registrations was a
concern as a separate registration is now required with every state
where service is being provided."
"Respondents to the survey
emphasised that filing of returns be made simpler. There should also be a
centralised registration for inter-state services," it added.
Regarding
the e-way bill, the respondents found the current limit of 10 km to be
inadequate for the purpose of updating details of goods on the portal.
"Respondents,
especially small businesses, felt that the e-way bill need not be
introduced as it was only an additional compliance requirement, as all
details of sale and purchase were readily available on the portal,"
Ficci said.
"It was suggested that the minimum limit for
requirement be increased to 50 km and there be no requirement of e-way
bill for movement of goods within the city limits."
The survey revealed that businesses, especially exporters, faced difficulty in claiming refunds.
"The
mismatch between shipping bill date and tax invoice date does not allow
initiating refund of Integrated GST (IGST) paid on exports. They have
suggested that this condition of matching shipping bill date and tax
invoice should be waived off," the industry chamber said.
"Firms
which supply raw materials to its SEZs (special economic zone)
locations in other states are liable to GST as such a transfer is
considered sales and is not getting a zero-rating benefit.
"Such transfers for captive consumptions should not be charged under GST."
According
to most respondents, there is also need for greater clarification on
the anti-profiteering provisions "to ensure that they do not lead to
undue harassment".
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