A committee which comprises of government officials has been set up to review the commandments administering the goods and services tax. The panel is hinting towards the fact that their main intention is to simplify the tax regime for the businesses, particularly the small players who are facing difficulties in complying with the increased burden.
The committee is being headed by M Vinod Kumar who is the GST chief commissioner for the state of Karnataka. The panel is overviewing the entire scope of the issues pertaining to GST. "The idea is to have a regime that benefits everyone and, if needed, we will make the necessary amendments. We have already done changes wherever we have received complaints," a senior officer stated.
"This is a welcome development as it shows that the government is open to suggestions from outside and does not want a system that is put in place by officers alone," said a consultant with a leading company. The authorities have faced serious criticism for the infrastructure and compliance issues which the new tax regime brought with itself and these concerns impacted the small businesses, leading to great demonstrations against the government.
Amendments are necessary and some of them have been initiated from the end of a group of state finance ministers (GoM). The government officials themselves have pointed out the glitches which the new indirect tax regime holds. The GoM’s suggestion to increase the limit of the composition scheme to INR 1.5 crore from the present ceiling of INR 1 crore. But, such a decision would require necessary amendments in the law. Likewise, the change to permit extension of the less burdensome composition scheme will require legal adjustments. Mandating quarterly returns for all businesses or an alteration in the current return filing system demand amendments. In addition to this, there are proposals stating the existence of anomalies pertaining to the anti-profiteering body where the excess input tax credit needs to be shared.