The goods and services tax (GST) has had a positive impact on the logistics of businesses, says a Federation of Indian Chambers of Commerce and Industry (FICCI) survey. More than three-fifths of the respondents reported better inter-state transportation of goods and over half of them said goods vehicles are no longer stopped and checked at state borders.
Around three-fifths of the respondents cited reduction in transportation time after
GST was implemented. The survey was done between November 2017 to January this year covering micro, small and medium enterprises and large companies, according to a FICCI press release.
The industry highlighted glitches in the GST network portal, cumbersome procedures and documentation and cost of compliance as the major areas of concern that need to be addressed.
Ineffective volume handling capacity of the portal, delayed reflection of updated data and payments, delays in process of input credit set offs, inability to upload heavy files of certain formats and lack of provision to modify or revise errors were identified as the major challenges to businesses. The respondents suggested a major revamp of the portal to make it more efficient.
Monthly filing of GST return was seen as cumbersome. Around 78 percent of the respondents suggested that the periodicity of return filings for taxpayers with aggregate turnover above Rs 1.5 crore should be changed from monthly to quarterly. For services providers, multiplicity of registrations was a concern as a separate registration is now required with every state where service is being provided. Respondents to the survey emphasised that filing of returns be made simpler.
Small businesses felt that e-way bill need not be introduced as it was only an additional compliance requirement as all details of sale and purchase were readily available on the portal. It was suggested that the minimum limit for requirement be increased to 50 kms and there be no requirement of e-way bill for movement of goods within the city limits.
Businesses, especially exporters faced difficulty to claim refunds. Most respondents also stated that there is a need for greater clarification from the government on the anti-profiteering provisions to ensure that they do not lead to undue harassment.
Source: fibre2fashion.com