The working groups can seek the views of the administrative ministries and key industry bodies, professionals and experts as needed. They have been asked to focus in particular on procedural simplifications and the rate structure. The government will take a call based on the reports of the groups and may even expand them by including officers from the state governments to quickly settle issues.
A July 1 rollout will leave the Central Board of Excise and Customs (CBEC) about three months to sort out all grievances.
The concerns relate largely to procedural matters and compliance complexities. The ecommerce sector’s objections, for instance, relate to registration in every state while MSMEs are worried about electronic compliance readiness and costs.
Under GST, much of the scrutiny will happen electronically through invoice matching, a measure that will reduce the interface with tax officials, but this has its own challenges.
Experts welcomed the initiative, pointing to a host of unresolved issues.
“While the draft GST model law is out, several critical issues such as treatment of tax paid on transition stock, inter-office supplies, state in which GST has to be paid in case of multi-locational services, etc, are still not clear,” said Pratik Jain, leader, indirect tax, PwC. “It will be good if the government considers setting up similar groups for a few other sectors such as FMCG and media.”
New Source - Economic TImes