23 Oct 2017, 17:02 — 2 min read
Revenue Secretary Hasmukh Adhia made a statement about GST which has relevance for SMEs trying to figure their way around the new tax code. Adhia has admitted that there is a need for some reform to the existing GST structure and change may be forthcoming.
"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 in a PTI report.
When pressed for a timeline about the rejig, he was quite keen and said that it would be done sooner rather than later though some processes would have to be followed. He said, "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.”
Asked when the new tax system would be stable, Adhia said: "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." He added, "If you see the experience of VAT, there was opposition for one year. People were on streets because nobody knew what VAT is, the last fellow was only paying sales tax. It was more opposition that time than this."
The GST Council, chaired by Finance Minister Arun Jaitley is said to hold its 23rd meeting on November 10, 2017 in Guwahati. The last council had reworked the GST provisions to make the tax structure more business friendly for a number of industries and products. The turnover threshold for the composition scheme has been hiked from INR 75 lakh to INR 1 crore. Also, small businesses up to 1.5 crore are allowed to file returns and pay taxes quarterly and not monthly.
Posted byGlobalLinker Staff
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