New Delhi: Two years after India’s largest indirect tax reform on July 1, 2017, the big and small of both traders and traders, still have a long wish list.
Goods and Services Tax (GST), which expanded coverage of up to 50% indirect tax on first tax basis, to bring 3.4 million new taxpayers, has made taxation more transparent and difficult to evacuate, but Loose ends like exit from important parts of the economy, such as land, power and major fossil fuels, out of ambition, by which businesses To get the cost.
In the slow economy, large businesses want to facilitate further, while traditional traders are already facing an attack of e-commerce, wanting a state subsidy to buy a computer for efficiency and to follow the system, depending on the technology.
Tax rates on items are still at 28% slabs such as cement, reduction in tax on services which are affecting small and medium enterprises (SMEs), and reducing the number of slabs by up to four to three in those structural changes Which business you want from? . While the GST Council, the Federal Indirect Taxation Body, has reduced tax rates on items many times faster, it has left services less or more untouched. Given that services account for 60% of the economy and most services are 18%, the tax burden on SME services is high. “Tax on professional services should be reduced by 18%, which is very high. Many SMEs are not able to afford professionals like accountant and auditor, “said Sr. Chandrakant Salunkhe, founder and chairman of the SME Chamber of India.
Pravin Khandelwal, national general secretary of the Confederation of All India Traders (CAIT), said that about 35% of the traders in the country can be computerized to technically equip their business for compliance with GST. “Therefore, the government should provide 50% subsidy to traders to buy computer and allied equipment. This tax will encourage compliance, “said Khandelwal.
On the other hand, large businesses want structural changes in GST. In a statement Vikram Kirloskar, chairman of the Confederation of Indian Industry (CII), Industry Group, said in the statement that the industry expects GST slabs will now be converted to just 2-3 rates for common and marginal goods. At present, the slabs are 5%, 12%, 18% and 28% apart from a zero tax category and some items have cess at the highest slab. “To eliminate GST’s full input tax credit, excluded products such as fossil fuels, real estate and electricity should also be covered. It is important to simplify GST for multi-state operations such as single registration and intra-company services. “Geloscarker said that the jet fuel in GST would allow airlines to get tax on fuel when calculating their final taxes. They provide liability on airline service. Oil companies like Oil and Natural Gas Corp and fuel retailers Indian Oil Corporation Limited will get similar benefits for the benefit of crude oil, petrol and diesel in GST.
Government officials say that ‘ease of doing business’ will be a guiding principle in shaping GST in the future. An official confidentiality for discussion in the GST Council said, “Logicization, simplification and ease of doing business are now priority. In an official statement from the Finance Ministry, on Sunday, it has been stated that in the current financial year, service providers up to 50 lakhs per year A flat tax system will be offered at the tax rate of 6% for the payment without the exemption on sale. It is similar to a plan, which will be sold up to 1.5 million Is available for traders and merchants of the merchandise.The new simplified tax return system will start from July 1.