GST: YET AN­OTHER OVER­HAUL

India Today - - INSIDE -

From tech­ni­cal glitches to cum­ber­some fil­ing pro­ce­dures to un­rea­son­ably high tax rates on cer­tain goods and ser­vices, the many prob­lems with the Goods and Ser­vices Tax (GST), in­tro­duced this July, have raised quite the furore in the busi­ness com­mu­nity. The lat­est griev­ance per­tains to their work­ing cap­i­tal which busi­nesses ar­gue, is get­ting stuck with the gov­ern­ment as the GST Net­work isn’t clear on the man­ner of re­fund of tax on in­put paid by ex­porters on their pur­chases. Re­ports quot­ing Praveen Khan­del­wal, a mem­ber of the ad­vi­sory group of the GST Coun­cil’s law com­mit­tee, said close to Rs 2 lakh crore was blocked in this man­ner ever since the launch of GST. This af­fected the func­tion­ing of many busi­nesses, since they have been de­prived of work­ing cap­i­tal, or the cash avail­able for day-to-day op­er­a­tions, the very oxy­gen of any busi­ness en­ter­prise. Ex­porters had no clar­ity on the amount of re­fund they would get, and in most cases ended up re­ceiv­ing as re­fund only a small por­tion of the orig­i­nal GST they paid on in­puts. How­ever, a new on­line form to claim the in­put credit launched on Novem­ber 5 should bring more clar­ity to such busi­nesses. “This will now ini­ti­ate the process of fil­ing re­funds by ex­porters and should give re­lief to all the for­eign ex­change earn­ers,” said Ab­hishek Jain, a tax part­ner with

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