TaxTMI 
TaxTMI 
TaxTMI 
The GST law has become very successful in a short span of its implementation on 1st July 2017. The Governments revenue per month (on an average basis) from the GST is more than rupees one lakh seventy thousand crores. Despite of it, changes in the GST law are required for faster growth of trade and industry, to make India a developed Nation by 2047. Some of the very important suggestions to improve ease of doing business as well as compliance under the GST law have been enumerated below:
1. Correction of Inverted Duty Structure to Avoid Accumulation of GST ITC:
The correction in Inverted Duty Structures is needed to minimize accumulation of input tax credit. The rates of goods and services must be aligned so as to bring output tax rate higher than the input tax rates. In pharma sector, rationalization of rates on inputs under Chapter 29 is a necessity to align with the rate on finished products under Chapter 30. Amend Rule 89(5) to allow refund of input services and capital goods in addition to inputs.
2. Centralize Audit u/s 65 of CGST Act for Multi State Operating Companies
The audit of taxpayers registered in various States must be simplified and conducted at a single place by the common audit authority nominated by the CBIC. This will improve ease of doing business and reduce compliance cost as well.
3. Section 16(2)(c) of CGST Act Needs Amendments to Allow ITC to the Customers undisputedly:
Considering the decisions of various High Courts across the Country, Section 16(2)(c) of CGSS Act, 2017 must be amended to clarify that the tax should have been remitted by the supplier. However, recipient is not responsible for non-payment of tax by the supplier and ITC is allowed. The recovery must be made with the supplier first.
4. Cancellation of GST Registration from Retrospective Date (Date of Registration) due to Non- Presence of Taxpayer at PPOB is Not Legal:
The GST Officers are cancelling GST registration from retrospective date or date of registration obtained, if taxpayer is not present on date of verification of principal place of business by TI. Consequently, ITC claimed by customers are disputed and disallowed to the customers. It results in unnecessary litigation.
5. Rule 138 of the CGST Rules must be Amended to Exempt from Requirement of E-way bill for Movement of Goods within Jurisdiction of a Municipal Corporation / Panchayat or up to a specific distance within the limits of a city.
The exemption will reduce compliance burden and improve ease of doing business for MSMEs.
The Government should focus on above points and resolve it for the betterment of trade and industry.