Millennium Post

CII points out issues to be ironed out for smooth sailing of GST

Kolkata: Requesting for simplification of GST compliance and implementation, Confederation of Indian Industry (CII) has highlighted the issues of filing of returns, matching of invoices and claiming timely credit of input tax credit (ITC) as areas to be addressed in smoothly transiting to GST.
CII is in agreement with the proposals presented to the GST Council by Nandan Nilekani, former chairman of the Unique Identification Authority of India and the Chairman of Infosys. "If the buyer accepts supplier invoices on the GST system, this automatically determines the input tax credit (ITC). In the proposed model, there will be no mismatch or reversal," Nilekani said.
It may be mentioned that GST was introduced on July 1, 2017.
According to CII, simplification of GST compliance would result in higher number of returns filed, increased collection of revenues and easier working capital management by trade and industry. The GST network (GSTN) functioning and return filing formats could be tweaked to ensure acceptance of invoices.
CII stressed the need for designing a fool-proof and effective return filing system, where seamless and speedier ITC can be availed by the recipient, as against the current requirement of filing three GST returns.
In some sectors with thousands of invoices daily, this exercise leads to complexities such as mismatches, ITC reversal with interest and reclaim of ITC. Currently, the buyer is responsible for ensuring tax payment by suppliers to avail ITC. Mismatch in invoices due to filing errors leads to funds being held up.
Nilekani noted that a successful model should align with the natural business process and further suggested that the proposed process will offer multiple channels for upload and acceptance of invoices and filing of returns.
CII is hopeful that their suggestions will pave the way for smoother implementation of GST and simplification of return filing system, which in turn will enhance tax revenues towards a successful 'Good and Simple Tax'.

Next Story
Share it