New Delhi, Oct 23 (KNN) Eyeing at facilitating relief to the struggling Micro, Small and Medium Enterprises (MSMEs) sector in the country under the newly implemented Goods and Services Tax (GST), the GST council is in the process of reconsidering the tax rates and compliance burden on the sector, Revenue Secretary Hasmukh Adhia informed.

Adhia in a press interview said that the GST council is looking at simplifying the process this includes readjustment of tax rates.

Also possible reductions in some items that attract the highest tax slab of 28% are likely to be revised.

At present under the One Nation One Tax reform of the government, products are classified into various subcategories—in many cases, different subcategories fall in different tax slabs—under a code called the harmonized system of nomenclature (HSN) that existed before GST was implemented on 1 July.

This has been a persistent problem raised by different sector of the economy including the MSMEs.

There have been cases when different items involved in manufacturing of a commodity happen to fall in higher slabs, resulting in an irrational taxation on the items.

Addressing concerns of SMEs and harmonization of items for better tax compliance is on the agenda, Adhia said in an interview.

Responding to the concern, the revenue secretary said that there is a need for harmonization of items chapter-wise and the government is considering cases in which there is a big burden on small and medium businesses, once market, the government might bring them down. (KNN/DA)