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World Trade Centre Mumbai Presents Memorandum Seeking Resolution Of GST Concerns - My Vat Calculator

World Trade Centre Mumbai Presents Memorandum Seeking Resolution of GST Concerns

"MVIRDC World Trade Center Mumbai Submits Memorandum to CBIC and GST Council Addressing 12 Challenges Faced by Trade and Industry in GST Compliance"

MVIRDC World Trade Center Mumbai has recently submitted a memorandum to the Central Board of Indirect Taxes & Customs (CBIC) and the GST Council, addressing 12 challenges that trade and industry face in complying with the Goods and Services Tax (GST). The memorandum aims to shed light on the emerging concerns of the industry and provides recommendations to tackle these challenges effectively.

The GST, introduced in India in July 2017, was a significant tax reform aimed at unifying the country’s complex indirect tax structure. While the GST has simplified tax compliance in many ways, businesses still encounter various difficulties in adhering to its provisions. The MVIRDC World Trade Center Mumbai has taken the initiative to identify and address these challenges, offering valuable insights to the authorities.

One of the primary challenges highlighted in the memorandum is the complexity of compliance procedures under the GST regime. Many businesses struggle to understand and navigate the intricate rules and regulations, leading to errors and non-compliance. The memorandum suggests the need for simplified compliance procedures and the provision of comprehensive guidance to businesses, ensuring better compliance rates and reducing the burden on taxpayers.

Another significant concern raised in the memorandum is the frequent changes in GST rates and classifications. The dynamic nature of the GST framework often creates confusion among businesses, resulting in difficulties in determining the correct tax rates for their products or services. The MVIRDC World Trade Center Mumbai recommends a stable and predictable tax rate structure, with periodic consultations between the government and industry stakeholders to address any potential issues promptly.

The memorandum also emphasizes the need for a robust IT infrastructure to support GST compliance. Many businesses face challenges in adapting their existing systems to accommodate the GST requirements, leading to technical glitches and delays in filing returns. The MVIRDC World Trade Center Mumbai suggests the development of user-friendly and efficient IT tools, along with comprehensive training programs for businesses to ensure smooth implementation of the GST.

Additionally, the memorandum addresses the issue of input tax credit (ITC) availability. Under the GST regime, businesses can claim ITC on taxes paid on inputs used in the production of goods or services. However, many businesses face difficulties in availing ITC due to procedural complexities and non-compliance by their suppliers. The memorandum recommends streamlining the ITC claim process and implementing strict measures to ensure compliance by suppliers, enabling businesses to benefit fully from the available credits.

Furthermore, the memorandum highlights the challenges faced by small and medium enterprises (SMEs) in complying with the GST. SMEs often lack the resources and expertise to navigate the complex tax system, resulting in non-compliance and increased compliance costs. The MVIRDC World Trade Center Mumbai suggests the establishment of dedicated support centers or helplines to assist SMEs in understanding and fulfilling their GST obligations effectively.

The memorandum also draws attention to the issue of delayed refunds under the GST regime. Many businesses face delays in receiving their rightful refunds, leading to cash flow problems and increased financial strain. The MVIRDC World Trade Center Mumbai recommends expediting the refund process and implementing measures to ensure timely and efficient refund disbursement, thereby easing the financial burden on businesses.

Moreover, the memorandum focuses on the challenges faced by the export sector in claiming refunds on taxes paid for inputs used in the export of goods or services. The complex refund process often results in delays and administrative hurdles, negatively impacting the competitiveness of Indian exporters. The MVIRDC World Trade Center Mumbai suggests simplifying the refund process for exporters and providing them with a seamless mechanism to claim their rightful refunds promptly.

In conclusion, the memorandum submitted by MVIRDC World Trade Center Mumbai addresses 12 crucial challenges faced by trade and industry in complying with the GST. By highlighting these concerns and offering suitable recommendations, the memorandum aims to facilitate smoother GST compliance, reduce the burden on businesses, and enhance the overall effectiveness of the tax regime. The authorities should carefully consider these suggestions to ensure a more efficient and taxpayer-friendly GST framework in India.

Barry Caldwell

Barry Caldwell

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