CAIT writes letter to finance ministry suggesting measures to improve GST for small businesses

New Delhi, July 2 (KNN) On completion of one year of Goods & Services Tax (GST) in the country, the Confederation of All India Traders (CAIT) has highlighted some of the issues that need to be reviewed immediately by finance ministry to make the process of GST more simplified.

The Confederation of All India Traders (CAIT), in a letter written to the ministry, has suggested that instead of monthly returns, quarterly returns should be prescribed on Form 3B to make return filing simpler.

Pointing the areas that need immediate action of government, the traders’ body asked the ministry to review issues like filing of multi-returns, refunds from department, awareness and education about GST fundamentals and its compliance obligations.

It also suggested that the refunds should be credited automatically to bank account of traders and HSN code should be made applicable only on the manufacturers and not on traders.

For traders doing business in more than one state, CAIT has asked the ministry to allow one registration number across India instead of taking registration in each state.

Further, CAIT asked for financial assistance in a form of subsidy for traders to equip them with computers, in order to encourage e-compliance as large number of small trader across the country do not have computers.

It has also requested the ministry to form a joint committee of traders and senior officials at district level to take GST down the line.

"A comprehensive incentive scheme should be given to traders who adopt digital payments for complying tax obligations and use digital payment in their day to day business by allowing rebate in tax," it further said.

Also, it is necessary that pending amendments in GST Act should be done as early as possible, the letter read.

Besides, “reverse charge mechanism should be deferred till March next year”, CAIT said in its letter to the ministry.

Other suggestions include no input credit should be denied on pretext of invoice matchmaking, traders should be allowed to edit the returns, the classifications of goods should be made more easy, inter-state supplies should be allowed in composition scheme and a GST Lokpal should be constituted for fair and transparent redressal of grievances.

In order to bring transparency in the tax system, the government of India implemented GST on July 1, 2017. It is an indirect tax levied on the supply of goods and services which has replaced many indirect tax laws that previously existed in India.