GST : Challenges ahead after 108 days

     Written by : SMTV24x7 | Tue, Oct 17, 2017, 01:30 PM

GST : Challenges ahead after 108 days

Hyderabad, Oct 17: Goods and Sevice Tax (GST) has completed 108 days, Both center and state governments had to face some key challenges and the govt has reviewed the tax structure after 3 months and has solved some problems but still some are pending.

The Government has addressed the following problems faced by many segments of the society.

# Reduction in tax rates:

The GST Council has reduced the tax rates on various items considering the category of usage of products which has resulted in partial relief for consumers

# Export Promotion:

The Council has decided a mechanism that would be followed to return the input tax credit of exporters so that they don't face a liquidity shortage.This decision has improved the exports.

# Filing of returns:

The Govt has deferred the date for filing of tax returns and also increased the threshold limit for composition scheme and also allowed people to file quarterly returns if their turnover is below 1.5 Crore.

Some of the challenges faced by the government are....

# petrol/Diesel in GST:

The central govt may soon bring petrol/diesel and its products into GST but they have not yet decided the tax rates that should be imposed, currently, the total tax incidence on these items varies from 50-70 % on Diesel and 80-100 % on petrol. The government may fix the tax at lower rates but the revenue collections would reduce.

# Constitution of Anti Profiteering Authority:

Currently many traders are charging higher than the MRP and some traders are not passing the Input tax credit to customers many people have complained that Government must constitute APA as prescribed in the law to ensure that traders don't cheat customers.