GST Council will take right steps to address their concerns. Government is trying to look at steps to improve the compliance burden of SMEs. Compliance burdens on banks and insurance firms are set to rise under new indirect tax regime. . Let’s have a look on steps to address concerns of SMEs.
Addressing concerns of SMEs
Adhia said that they need to make some changes in structure of goods and services tax to reduce burden of small and medium industries. Main aim of addressing concerns of SMEs is to bring together of items is for better tax compliance. This GST system will take about one year to complete. In GST, more charge is built-in such as excise duty, service tax and VAT has been combining.
Also, he said that this process may result in some readjustment of GST rates. It also falls in tax of some items that are in highest tax slab of 28 per cent. However, Small and Medium Enterprises (SMEs) highlight the concerns of sector under newly execute Goods and Services Tax (GST). But addressing concerns related to GST are top priority for government.
Need to change in GST rates
Adhia said GST rates need to change in same chapter. There is need to make list of commodities chapter wise well-matched and that has to appear in small and medium enterprises so if we reduce burden on industries and common man then compliance will improve.
And New GST has been executed from four months. This new indirect tax system has lift issued and compliance which GST council has resolved many issues. Also, this GST Council is most important body in these systems.
Easy procedures for exporters
GST Council has made minor changes to pay taxes and make GST filing in easy way for small and medium businesses. Apart from this, refund process of exporters has been updated on more than 100 items.
Plan will be given to GST council
Adhia said that team needs to calculate for change which will decide on rate of interest to be made. This GST system is executed on 1st July. And he also added that team will keep its plan in front of GST council as early as possible.
Different tax slabs for products
Some products are classified into various subcategories. But in many cases different subcategories fall in different tax slabs under code called Harmonized system of nomenclature (HSN) before GST execute. This classification is hard to follow for small and medium enterprises (SMEs)
No change in Taxes of auto sector
There is no change in taxes pre and post GST. While calculating sources had mad mistake which has corrected. For large cars registration fee is 180% and for smaller ones 150% value of car and there is 25% VAT.
Government is looking to remove compliance burden for small businesses and ensure they are not impact by GST. Also, they are working on solution for refund of taxes paid by exporters. Adhai also show to TOI that petrol and diesel will not included in GST immediately. In other countries, oil products are high than VAT or GST rated.
GST Council next meeting on November
GST Council 23rd meeting is held in Guwahati under leadership of Finance Minister on November 10. They are eager to do it as soon as possible but it depends on how much time committee takes to work on it. There is complete change of tax system in GST in one year.