Industry body Confederation of Indian Industry (CII) on Tuesday called for the need to simplify GST compliances and implementation. According…
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Industry body Confederation of Indian Industry (CII) on Tuesday called for the need to simplify GST compliances and implementation.
According to CII, simplification of GST compliances would result in higher number of returns filed, increased collection of revenues, and easier working capital management by trade and industry.
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“The GST network (GSTN) functioning and return filing formats could be tweaked to ensure acceptance of invoices,” it said a statement.
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CII said that it is in agreement with the proposals presented to the GST Council by Nandan Nilekani, former chairman of the Unique Identification Authority of India and Chairman, Infosys, who said: “If the buyer accepts supplier invoices on the GST System, this automatically determines the input tax credit (ITC). In the proposed model, there will be no mismatch or reversal.”
Further, CII stressed on the need for designing a effective return filing system where seamless and speedier input tax credit can be availed by the recipient, as against the current requirement of filing three GST returns.
“In some sectors with thousands of invoices daily, this exercise leads to complexities such as mismatches, ITC reversal with interest, and reclaim of ITC,” the statement said.
Currently, the buyer is responsible for ensuring tax payment by suppliers to avail ITC and mismatch in invoices due to filing errors leads to funds being held up.
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