Government Reviews GST Transition and Addresses Industry Concerns, ETCFO
The government is scrutinising the pain points flagged by the industry following the switch to a two-rate goods and services tax (GST) structure on September 22 and will present them to the GST Council after a detailed review.
“We are carefully tracking the transition….There are some issues that have been raised by the industry,” a senior official told ET.
The official, who spoke on condition of anonymity, said a number of issues including those related to group insurance are being examined. The Centre will receive comprehensive data on implementation of the new GST rates by September 28 and will take up “any large-scale” non-adherence by the industry.
ET had earlier reported that the Central Board of Indirect taxes and Customs (CBIC) had asked its field formations to reach out to shopkeepers, large retail chains and dealers across various regions, requesting brand-wise details of prices before and after September 22 on goods such as food items, toiletries, stationeries, consumer durables, automobiles and medicines to check whether the benefits of GST rate cuts were being passed on to consumers. “The two sectors which we feel require further discussion are the paper and the insurance industry. We are talking to all the stakeholders. We may take it up at the next GST Council meeting,” said another official. The government’s immediate focus is on smooth transition of the rate rationalisation process, automation in GST returns and refunds, and invoice management. “We are working on setting up a monetary limit for demand notices, along with rationalisation of penalty,” the official said, adding that any significant changes to GST rates would be avoided.Shashank Priya, special secretary and member of the CBIC, said, “Further discussion on reforms of inclusion of ATF (aviation turbine fuel), etc., will not happen before a year, till the dust settles down on GST 2.0 reforms.” He was responding to the question, at the National Conclave on GST 2.0 organised by Assocham, on when ATF would be included in the GST. The CBIC is working on automatic return and refunds, and the 90% refunds rule for exporters, announced by the GST Council earlier this month, will be implemented from the next month, Priya said. When asked about the loss faced by the auto sector on account of the lapse of the accumulated compensation cess on September 22, he said that the government at this stage has no plans to address it by refund or giving credit.
