The Goa Chamber of Commerce and Industry (GCCI) has requested multiple reforms of the GST laws due to the upcoming GST Council meeting, which is to be held on the 22nd of June.
The recently elected representative of the council, Chief Minister Dr Pramod Sawant will attend the meeting. The memorandum that will be submitted by Shrinivas Dempo, President of GCCI aims to enhance and strengthen the GST framework through several reforms including the newly introduced registration procedures and suggestions that are sector-targeted. The presentation of the memorandum will be conducted in the presence of Rohan Bhandare and Yatish Pai Vernekar, the Chairman and Vice-chairman of the GCCI taxation and financial services committee and Sanjay Amonkar, the Director general. They are optimistic that this memorandum will drive the economy towards growth.
The GCCI aims to introduce proposals that will improve the business environment in the state through its memorandum. It has requested that the Input tax credit (ITC) be imposed on homestays, hotel construction items and warehousing facilities. The memorandum also proposes a 12 % single tax rate to be imposed on hospitality services.
It states that due to the working capital congestion, the rectification of the inverted duty structure must be carried out as it influences the ship-building enterprises.
The GCCI has requested the streamlining of registrations and verifications of new businesses for GST, through standard operating procedures (SOPs). It proposes that by providing welcome letters and a one-window registration procedure to new taxpayers the process can be simplified and can improve consistency.
To reduce the excessive unwarranted show cause notices, the council proposes the idea of redesigning GSTR 9C and 9 forms which would lead to a more structured disclosure. The memorandum request an amendment of Section 16(2) and Rule 37 which would lead to the interest on ITC reversal to expire only after 180 days from the date of the suppliers invoice. To reduce the burden faced by taxpayers the GCCI recommends a rationalisation of GST rates. This will also address inverted duty structures, reduce multiple tax rates and eliminate multi-layered effects of taxes.
It has lastly asked for the elimination of time limitations in accordance with the availing of ITC and to further decrease the litigation and financial burden faced by MSMEs it has requested for a much-needed amnesty scheme.
