Thursday, 29 September, 2022
HomeEconomyIndustry and govt to brainstorm on GST at PHD Chamber’s conclave

Industry and govt to brainstorm on GST at PHD Chamber’s conclave

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The conclave will bring industry & the government face-to-face to address questions that have been raised over the implementation of GST.

New Delhi: When the Goods and Services Tax was introduced on 1 July 2017, it was touted as the biggest indirect tax reform in India’s history. The landmark move has, however, remained in the headlines as its implementation has not been smooth and small and medium businesses have complained about its complexities.

The problems range from information paralysis to a disproportionately high cost of tax compliance. Switching to an entirely computerised system plagued with technical glitches has also been challenging. The government, on its part, is trying to address issues through measures such as extending deadlines for filing GST returns and waiving late payment fees.

In this scenario, the PHD Chamber of Commerce and Industry (PHDCCI) is organising a National Conclave on ‘GST – A Catalyst for Economic Growth & Ease of Doing Business’ on Saturday, 7 October.

Shiv Pratap Shukla, the Union Minister of State for Finance, will be the chief guest at the conclave, which aims to bring together industry experts and government officials to discuss GST in detail, including the challenges faced by industry and the GST experience so far.

“The implementation of GST will help to create a common national market and reduce the cascading effect of taxes on the costing and pricing of goods and services,” PHDCCI said.

Main topics up for discussion

– Avoiding tax-on-tax, or cascading taxation, which has been made possible through better methods to avail and utilise input credit. However, the benefits of input credit can only be availed if the corresponding supplier has made the necessary tax payments and is currently proving to be a hurdle.

– The reverse charge mechanism, in which the recipient of goods or services has to pay GST and not the supplier. Aimed at bringing goods sold by unregistered entities to registered ones under the purview of tax, reverse charge has indirectly encouraged transactions between unregistered entities. Further, big businesses might push for smaller ones to remain unregistered, fearing lack of tax payments by them – which would prevent them from claiming input credit.

– The industrial and state perception of GST – For example, according to the Reserve Bank of India’s fourth Bi-monthly Monetary Policy Statement, 2017-18, “[t]he implementation of the GST so far also appears to have had an adverse impact, rendering prospects for the manufacturing sector uncertain in the short term. This may further delay the revival of investment activity.”

– The ‘GSTN – Backbone of GST’ session will discuss return-filing and the software used for it. Upon launch, GSTN was riddled with technical difficulties and design bugs.

– The conclave will also touch upon issues such as export and import of goods and services, and levy and collection of GST within and outside a state.

ThePrint is the official media partner for the PHDCCI’s ‘GST – A Catalyst for Economic Growth & Ease of Doing Business’ conclave

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