Nearly 50% CEOs have given thumbs to the Narendra Modi government for the implementation of the Goods and Services Tax saying that teething problems are posing a challenge now but the GST has long-term benefits.
Nearly 50% CEOs have given thumbs to the Narendra Modi government for the implementation of the Goods and Services Tax saying that teething problems are posing a challenge now but the indirect taxation system has long-term benefits. According to Mega CEO poll by CNBC-TV18, even as 68% CEOs have said that they expect muted or slow demand in the next 6 months, only 32% say that the GST has added to their woes – the poll was conducted by Dhruva Advisors.
49% CEOs said that they faced teething problem due to the GST but see long-term benefits, according to the poll. The GST Network, meant for filing returns, is still undergoing teething problems leading to delays in filing. Traders are not happy due to the problems faced by them because of the technical glitches. In 2015, Infosys was given a Rs 1,380-crore deal for developing and running GSTN.
Meanwhile, the GST Council is holding a meeting to discuss the problems faced by traders and businessmen. The council is likely to allow taxpayers to file their returns on a quarterly basis instead monthly to make less burdensome. In a further relief to small and medium enterprises (SME), the panel is likely to rationalise tax rate in sectors where the total incidence of taxation has gone up because the goods were earlier either exempt from excise or attracted lower VAT rates in the previous indirect tax regime.
On October 30, the government extended the last date for filing GSTR-2 and GSTR-3 for the month of July to November 30 and December 11. A week before that the government had waived penalty on the delayed filing of initial GST returns for the months of August and September. As per the data with the GSTN, a huge chunk of businesses file their returns after the expiry of the due date.