GST Council should consider reducing GST rates by 20% across slabs to boost demand: PHD Chamber

No.PR-189 July 31, 2020 New Delhi GST Council should consider reducing GST rates by 20% across slabs to boost demand: PHD Chamber PHD Chamber has urged the GST Council to reduce the GST rates by 20% across slabs for a period of six months to boost demand and revive the animal spirit of economy. In view of the forthcoming GST Council meeting, PHD Chamber emphasized that between the GST rates of 12% and 18%, the industry will prefer a tax rate of 12% to boost the economy. It was also suggested to bring the Aviation Turbine Fuel (ATF) & Piped Natural Gas (PNG) under the GST to enable these companies avail the benefit of Input Tax Credit. Dr. D K Aggarwal, President, PHD Chamber also suggested speeding the recovery process for VAT credit lying in the books of assesses. It was suggested that a facility for correction of errors may also be provided on the GST portal. Further, in order to address the issue of liquidity crunch faced by the industry, some mechanism whereby the industry can pay its GST including the arrears by December 2020 was also called for. In a detailed representation submitted to the GST Council, the Chamber called for rationalisation of rates to increase consumption, reduce compliance, reduce evasion and help to make it a good and simple tax. The Chamber also suggested refunding the unutilized Input Tax Credit at the end of any tax period. Further, as the Ministry of Corporate Affairs vide a Circular (No.10/2020) dated 23.03.2020, has clarified that funds spent on measures to tackle the Covid-19 outbreak will be counted towards the corporate social responsibility (CSR) activity of companies, Dr. Aggarwal has urged the Government to issue a clarification that all expenditure incurred by a dealer towards CSR activities enumerated under the above Circular will qualify for input tax credit, and expenditure incurred by the employers/companies/institutions to carry out sanitation in their premises and to provide personal protective gears and hygiene products to their employees will also qualify for input tax credit. The Chamber also called for protecting the VAT/CST Incentives under the GST regime. A clear policy should be framed to protect full benefits committed under old Tax Regime. Suggestions were also made with regard to numerous technical issues faced by the trade & industry members such as delinking the date of GST payment from filing of returns; allowing revision of GST returns; Relaxation on time limit for raising tax invoice by service providers’ ; Extension of time limit for issuance of Credit Note for FY: 2019 – 20 among others. Ends Media Division PHD Chamber of Commerce and Industry