Financial software solutions firm Tally is hopeful that the GST norms would be simplified further to help small businesses file returns and claim input tax credit.
“At present, the negative effects of GST among the small businessmen outweigh the positive vibes. We hope that the norms and guidelines will be simplified further to help these entities to file returns and claim input tax credit,” MD of Bengaluru-based Tally Solutions, Bharat Goenka, told reporters here today.
Goenka said it is heartening to see that the GST Council is quick to adopt the requisite changes to make the tax system more friendly.
However, businesses with an annual turnover of less than Rs 1.5 crore should be made to furnish monthly returns instead of quarterly, at the moment. This, according to him, would lead to delay in realising input tax credit by the businesses. Goenka said that more than 75 per cent of the taxpayers fell into this bracket.
He also said that the government’s proposed move to introduce rating system for the dealers would adversely affect business sentiments.
“Genuine businessmen may be forced to delay payments which will earn them poor ratings. This should not be the case,” Goenka said.