'Work on to Make GST Refund Process Fully Automatic'

Finance Secretary Dr. Hasmukh Adhia has said that continuous efforts are being made to simplify the GST system in the country. “We have gained in the process of simplification by introducing GST, but that does not mean there is no scope for betterment of the existing system. A lot more needs to be done.”

Speaking at a session on ‘One Year Journey of GST’ organised by Federation of Indian Chambers of Commerce and Industry (FICCI) in New Delhi, he further reiterated that work is being done to make GST refund process fully automatic.

On simplification of rates and slabs he said, “we understand the need of it, but we did our best in the given scenario, keeping in mind the revenue and societal concerns of economically poor class.”

‘Landmark in India’s taxation history’

Mr. Sandip Somany, Senior Vice President, FICCI and Vice Chairman & CMD, HSIL Ltd., said GST is not only the biggest indirect tax reform, but also a landmark in the country’s taxation history. “Results of FICCI survey on one year of GST show that implementation of GST has been successful on overall basis with 76% respondents stating that GST had a positive impact on their business. Also, 96% respondents believe that introduction of e-way bill mechanism in lieu of check posts will facilitate ease of doing business.”

Mr. Harsh Mariwala, Past President, FICCI, Chairman-FICCI Task Force on GST and Chairman, Marico Ltd., in his theme address said that GST is a complex subject involving many stakeholders. “In the long-term, it is positive for the country. It is combining very well with the overall upturn of the economy, and going forward it will evolve with lesser number of slabs and issues related to return and refund being resolved, in at least next one year,” he said.

‘Industry must give suggestions to resolve glitches in GSTN’

India’s biggest reform in indirect taxes still remains a work in progress as there are certain glitches in the network that need to be resolved, Mr. Somesh Kumar, Principal Secretary (Commercial Taxes & Excise), Government of Telangana said, while inaugurating an ASSOCHAM National Conclave on GST. “I see the second year bring a lot of stabilisation to the GST,” he said.

“One of the highlight of the GST was that there will be invoice matching; unfortunately the GST Network (GSTN) has not been able to provide this facility,” he added.

While he hailed the GST Council for showing lot of maturity with rapid response on emerging needs, Mr. Kumar said, “On GST Network I have my reservations, they could have done much better. Today, if there is any criticism of GST it is not on GST per se, it is on the network, its inability to respond and various problems that we face.”

Mr. Kumar also asked the industry to come up with its suggestions on resolving the various challenges that need to be resolved.

While GST has been very positive on the organised sector, the unorganised sector is still reeling under its impact. “SMEs were promised that they will not be affected, but on the whole this sector needs more support.”

Similarly, he said that there is a need to have rationalization of rates of tax/slabs, besides processing of refunds has not become seamless and particularly exporters are suffering.