New Delhi, Nov 7 (KNN) Ahead of the upcoming meeting of the Goods and Services Tax (GST Council) Micro, Small and Medium Enterprises (MSME) body Federation of Indian Micro and Small & Medium Enterprises (FISME) has submitted a representation to the finance minister listing woes of the MSMEs under the new tax regime.

In the representation FISME mentioned the problem of multiplicity of GST slabs that continues to prove to be a bottleneck for the MSMEs.

With regard to the input credit, FISME suggested that the GST council must consider delinking input credit from data entry and payment of GST by suppliers. It might help in some relief to the small businesses and MSMEs.

Also with regard to the C-form, FISME suggested that the suppliers must be given enough time at least an year to collect and submit the pending C forms and till then their transitional credits may be allowed in full. If needed, the government may devise appropriate safeguards to prevent misuse of the facility by asking dealers to submit an undertaking and details of interstate business.

GST on advance received should be abolished in order to ease the complication for the MSMEs, the letter added.

Mentioning about the composition scheme under the GST, FISME welcomed the measures introduced by the council under the scheme, it however added that the council must try to make it popular by extending the eligibility ring.

Highlighting the problems of the handicraft sector, the Federation raised that the levying of tax on stock transfer is proving detrimental as it increases transaction cost. It therefore suggested that the handicrafts sector must be given relief and be spared of GST on stock transfer of handicrafts.

FISME further raised concerns regarding the operational aspect of the One Nation One tax regime.

The Goods and Services Tax portal GSTN needs to be decongested in order to ease the filing process on the portal.

Also with regard to the E-way bill that is to be implemented, it suggested that a facility must be provided to raise the invoice through the portal itself and option may be given to businesses. The businesses that opt for invoices from the portal may be given exemption from filing GSTR1.

The GSTR2, which is yet to be implemented might end up adding burden to the already grappling sector as it involves the verification of each entry of purchase and also specify mis-match and not-match entries, the government must consider easing this norm, the Federation opined.

FISME has devised the list of problems and suggestions through interaction with the MSMEs from different sectors.

Also the federation recently met the Group of Ministers (GoM) along similar lines presenting the woes of the sector. (KNN/DA)