‘Taxpayers want rationalisation of GST rates, amnesty scheme
NEW DELHI: As GST completes seven years, taxpayers have demanded rationalisation of rates, faceless dealing with authorities and an amnesty scheme, a survey by a leading consulting firm showed. “Rationalising GST rate across sectors, with a focus on removing inverted duty structure,” is the top demand when it comes to structural changes for GST 2.0, the survey conducted by Deloitte showed.
GST Council is due to meet on Saturday where several issues are likely to be taken up. Rate rationalisation, including a reduction in the number of slabs, has been on the agenda for years but the Centre and the states have been postponing the decision as it will entail an increase in rates on some of the goods and services as the 12% and 18% slabs are likely to be merged around 16-17%.
Higher rates on several products may be politically sensitive, the ministers have feared. Correcting the inverted duty structure — where finished products attract lower levies than the inputs — is something that is easier to address. The survey covering 760 respondents across small and big businesses also drew attention to the problems that tax audits are posing across segments and pointed to multiple such actions by state and central authorities.
It also underlined the need to remove restrictions on use of input tax credits, which had been imposed due to frauds that came into focus. Some businesses have also sought steps, that will help reduce the working capital that gets locked up under the current system.
