New Delhi, Oct 23: Nearly four months into the Goods and Services Tax (GST) roll out, Revenue Secretary Hasmukh Adhia has said that some rejig in the rate structure may be required to reduce the burden on small ,medium businesses and common man.
In an interview to news agency PTI, Adhia stated “There is need for some rejig in rates… it is possible that some items in the same chapter are divided. There is a need for harmonisation of items chapter wise and wherever we find there is a big burden on small and medium businesses and on common man, if we bring them down, there will be a better compliance.
“We are very keen to do it as early as possible, it depends on how much time the fitment committee takes to work on it. They need data, calculate revenue loss. They need various comparisons. But harmonisation has to be done,” he added.
Not only this, he also said GST which amalgamates number of central and state levies including excise duty, service tax and VAT, will take about a year to stabilise, citing as it is a new system for everybody.
Referring to Value Added Tax (VAT) regime, he asserted “If you see the experience of VAT, there was opposition for one year. People were on the streets because nobody knew about VAT, the last fellow was only paying sales tax. But this time there is more opposition as compared to earlier tax roll out.
The GST Council, headed by Union Finance Minister Arun Jaitley and comprising representatives of all states, is slated to hold its 23rd meeting in Guwahati on November 10.
In last meeting, the council discussed the concerns of small traders and reviewed rates of 26 items.
After the meeting, Jailtey announced e-wallet for exporters April 1 2018 and the limit for turnover in compensation scheme increased from Rs.75 lakh to Rs. 1 crore and informed people about other key decisions.
Under the new composition scheme traders now pay 1 %, manufacturers 2% & restaurants 5%.
Apart from this, those who have with turnover of up to Rs 1.5 crore will have to file quarterly returns instead of monthly filings. While entrepreneurs having turnover above Rs 1.5 crore, the existing system will continue of three returns per month and so on.
Now lets see what the GST panel will decide in its next meeting to ease the burden on public, small and medium traders.