Coimbatore: The Indian Chamber of Commerce and Industry, Coimbatore and Tax Assesses, petitioned the Minister for Commercial Taxes, M K Stalin.
Coimbatore: The Indian Chamber of Commerce and Industry, Coimbatore and Tax Assesses, petitioned the Minister for Commercial Taxes, M K Stalin.
In their letter, they discussed various issues including GST as given below:
1) Increasing the Threshold Limit for Registration in Case of Supplier of Service
To achieve the objective of "One Nation, One Tax," in GST, the threshold limit for registration for those who deal exclusively in supply of services or who deal in both goods and services to be increased to Rs. 40 lakhs.
2) Interest not to be charged on the amount credited in Electronic Cash Ledger
Tax deposited in Electronic Cash Ledger should be considered as tax paid because the amount is paid only in the Government account. Just because the dealer has not filed the return and has not set-off the tax, should not be the reason for payment of interest at the time of delayed filing of returns.
3) Problem to supplier of materials/service if supply receiver's GST is inactive or suspended
When a registered dealer supplies material to another registered dealer (B to B) and shows the same in Table 4 in GSTR 1, he is not allowed to file the return if the supply receiver's GST is inactive or suspended. The registered dealer must change the same as B to C and show it in the unregistered dealer sales column. Once the supply receiver reactivates his GST number, he asks for GST input which can be done only in the next month alone through amendment. This becomes unnecessary hardship for the person who supplies material or service.
4) Removal of HSN Code in the Bill
The Government has instructed to mention HSN Code in the bill. The assesses find it very difficult and particularly the small and medium category totally feel that it is not possible. Sometimes, the same commodity has two different codes, business-like stationery and grocery store which have a number of items as they find it difficult to have HSN Codes in the bills.
Hence, it is suggested that the Government should make the system of HSN Code optional and not compulsory. The Government should consider uniform rates for goods under one Chapter, Items covered in one Chapter to be fixed at a uniform rate.
5) GST Helpline
It is noted that the GST authorities are not talking in Tamil. Most of them talk only in Hindi. Hence, we request you to kindly do the needful for getting replies in Tamil in GST Helpline.
6) GST Returns - Waiver of Interest and Extension of Time
Due to lockdowns and COVID Pandemic, the Traders and Assesses are put to a great hardship. It is quite natural that assesses expect an extension of time without late fees and interest. Filing of GST returns during lockdown period is also impracticable.
Further, various due dates are announced for traders based on their total turnover, i.e. bifurcation of dealers whose total turnover is above Rs 5 crore. It is totally unfair and unjust, as lock down is common to all.
Hence, we kindly request the Minister to consider and extend the due dates for the months of March, April, May and June for filing of returns upto September 30, 2021 and also for waiver of both late fee and interest.
7) Reduction in GST Slabs and Rates
The slab should be brought down to 2 or 3 slabs apart from zero-rated supplies. It may be 5, 10,15, and the highest rate of 28 percent should be abolished.
8) Exemption for Branded Items
At present, the GST is collected for branded essential food items. If there is no brand (Trademark) tax exemption is granted. This attitude affects the trading sector. Hence, tax exemption to be given for all kinds of essential food items whether it is branded or non-branded. There should not be any disparity in this regard.
9) E-Invoicing
At present, E-invoicing is made compulsory for those who do business for more than 100 crores. In case, the assesses who wish to raise E-invoice is doing less than 100 crores should also be allowed to raise E-invoice. This will certainly reduce tax evasion.
10) Formation of Traders' Welfare Board and High Level Trade Committee
Our Chamber was given representation in the Tamil Nadu Traders' Welfare Board during the period of Former Chief Minister M Karunanidhi.
This Board was constituted under the Chairmanship of Former Chief Minister M Karunanidhi.
Our Chamber suggests that the Traders' Welfare Board with 20 Members under the Chairmanship of Chief Minister and Vice Chairmanship of Commercial Tax Minister, which is existing at present, should commence functioning at the earliest.
Being our Chamber having 100 Trade, Industry and Professional Associations affiliated to us, we request the Minister to give nominations for two representatives from our Chamber in the Tamil Nadu Traders' Welfare Board.
To represent the grievances of Trade, Industry and Assesses to the Government it is suggested that a High Level Trade Committee be constituted with the representatives of Trade and Industrial Organisations. This will be helpful to take up the grievances to the GST Council directly and find out solutions.
11) Introduction of Samadhan Scheme in VAT Act
The GST Tax System was announced from 01.07.2017 onwards. The VAT Scheme was prevailing before GST. It is suggested that Tamil Nadu Government should introduce the Samadhan Scheme to deal and handle issues like Tax dues, Interest, Penalty, Cases, pending notices and pending cases in Courts under VAT Act.
12) Real Estate Sector
Real estate sector to be given option of having the present system or a system where ITC can be availed.
13) Introduction of "KYS - Know Your Supplier"
"Know Your Supplier" (KYS) facility as introduced in the 39th GST Council Meeting is yet to be launched in the GSTN portal. This facility will be of immense help to the recipient of goods or services to grade their Suppliers. Hence this facility should be introduced soon so that the recipient will have a handful of information about their suppliers before initiating any business relationship with them. Further this facility will be helpful for the recipient to grade their suppliers accordingly.
14) Revised Returns
We suggest that Revised Return facility should be enabled in the GST Act to correct the errors made while filing the monthly returns.
15) Transitional Credit
GST is a major tax reform in the history of our Country. The complex nature of the new laws and the new technology is posing great difficulties in complying with the law. Though GST law has allowed transitioning of the Input tax credit availed under the old tax regime to be carried forward to the GST regime, many of our members have committed various types of mistakes while claiming the transitional credit. As the time limit for claiming transitional credit and correcting the mistakes has ended on 27.12.2017 they are not able to claim the missed-out credits. A one-time facility may be provided to all taxpayers to claim missed out transitional credit, after verification by the department.
16) Waiver of Interest and Penalty
Though the Government has introduced various reliefs for taxpayers due to the COVID pandemic, the reliefs are in the form of partial waiver of interest, penalties and late fee. It is requested that all Late Fee may completely be waived for any delay in filing any returns. This to be taken up in the GST Council by Tamil Nadu Government.
17) ITC Credit
CGST and SGST paid in another state cannot be availed as Input Tax Credit in another State. At least ITC of CGST paid in another state should be allowed across all the States, as otherwise it defeats the purpose of introduction of GST and the concept of "One Nation One Tax".
18) Inverted Duty Structure
Textile industry and Pump industry in Coimbatore are having the problem of inverted rate structure. Refund of accumulated credit is allowed only for ITC on inputs. ITC on input services, accumulated on account of inverted rate structure, should be allowed for refund.
When inverted rate structure refund facility was extended to the textile sector, the credit earned till such introduction was asked to be reversed, which is against the principle of equity. Such credit should be allowed to be carried forward.
19) E-Way Bills
Vehicles carrying goods are detained / seized even for certain procedural mistakes. Instructions should be given to all field officers to resort to detention / seizure only if there is evidence of evasion of duty and not on the basis of any suspicion or for procedural mistakes. Holding up the consignment enroute causes delay in delivery commitments and cost overruns, forcing the taxpayers to pay the tax and penalty on the spot.
20) GST Area Bench at Coimbatore
The GST Tribunal should be set up immediately. Under TNGST Act, 1959 as well as under VAT Act, 2006, Tamil Nadu Sales Tax Appellate Tribunal is functioning in Tamil Nadu with the Main Branch at Chennai and Additional Benches at Chennai, Madurai and Coimbatore. Similarly, we request to have an Area Bench at Coimbatore to hear second appeals arising from the orders passed by the Appellate Authority and Revisional Authority considering the more number of registered dealers and fetching more revenue next to Chennai.