Don't penalise for mistakes during GST changeover: ASSOCHAM

Top Stories

»	49% Indian startups now from tier 2, 3 cities: Jitendra Singh
»	'India ranks 3rd in global startup ecosystem & number of unicorns'
»	Tripura exported over 9K tonnes of pineapples in 2 years
»	CPI inflation eases to 6.71% in July, IIP falls to 12.3%
»	Rupee depreciates 12 paise to close at 79.64 against US dollar

SME Times News Bureau | 27 Aug, 2016
Seeking adequate time for the required compliance of the Goods and Services Tax (GST) regime, an industry organisation said that penal provisions should not be applied for unintended mistake during the transition phase, as was done in the case of service tax for a few years.

"In such a mega tax reform, there will be requirement to issue clarification on various GST provisions and hence the governments at the Centre and states should gear up for such facility," Associated Chambers of Commerce and Industry of India (Assocham) President Sunil Kanoria said.

"Moreover, the penal provisions for unintended mistake during the transition phase should not be applied as was done in the case of service tax for few years," he said in a statement here on Friday.

Assocham will bring to the notice of Empowered Committee (EC) of State Finance Ministers, the concerns in this regard while pleading for waiver of any penalties on unintentional compliance errors during the transition period, the statement said.

The meeting of Empowered Committee (EC) of State Finance Ministers will be held on August 30.

"Considering significant increase in documentary requirement and digitisation of the entire GST process, industry has to gear up and change their accounting and computer system after the GST rules are released," Kanoria said.

"While the tax base is same for central GST and state GST, the administration by two authorities may lead to harassment if there is difference of opinion," he said, adding, "It is recommended that the Centre and state can form joint team for such purpose."