Sunday, 17 September 2017

3 Things Modi Government should do post GST Rollout

GST, arguably the biggest Tax Reform since Independence, was rolled with much Fanfare and over 80 million Businesses got their GST enrolment done and record Tax was collected (As per an estimate, the Tax base was increased by over 30%). But the life post GST enrolment has been anything but smooth. Though no one expected GST road to be free of any hiccup especially in a country where people feel (and blatantly proclaim) that Tax Evasion is their fundamental right, there are few steps which needs to be taken on priority to ensure that Road Ahead for GST is a smooth one.

Rockstar Portal for GST Registration Online: GST has been launched in digital era where everything from comb to Charter planes are available Online. GST website not working is not an option at all. You cannot expected Accountants or Business owners to waste their Energy in Online GST Return or Online GST Registration and getting error messages. Apart from this, UI and functionality of this website has to be better than all e-commerce site. Period.

Therefore Government should immediately look for world class player to maintain the GST site with focus on zero down time, privacy, security of data and ease of usage. The job needs to be given to best company across the globe with heavy fines to be placed for any downtime.
Proper Training for GST Return Filing: GST return filing is an Online Process. Though tedious, it is nothing which majority of people cannot understand (especially in Online era). The problem is that, without proper training, it appears more daunting than it actually is.
There has be regular seminars for few months on all Industrial platform like FICCI and at local industrial body for CA, Accountants etc. An easy demonstration of Online GST Enrolment and Online GST return filing should be showcased on all Channels (especially Doordarshan) and people need to be informed about the timelines of broadcast of these seminars through TV Ads and Newspaper Ads.
Reducing GST Tax Slabs: GST was introduced with prime objective to make Tax simpler. Hence the government should focus on achieving this objective at the earliest.
There has to be 3 Tax Slabs at the most. 0% for all the necessary items like food, milk etc. etc. 15% for Items of common use and Financial Service etc. and 28% for all the Luxury Items. Anything over and above this will create unnecessary confusion.
As a country, we required GST and required it earliest. Traders, Small Business Owners should be ready to face issues for atleast a month or so. But it is duty of government to ensure that all the issues are ironed out and businessmen face as little problem as possible.
Provisional release of 90% refund to exporters with ,Interest payable if refund not sanctioned in time ,Refund to be directly credited to bank accounts ,Comprehensive transitional provisions for smooth transition of existing tax payers to GST regime ,Special procedures for job work

1 comment: