100 days of GST: Five gaps that need to be plugged

A 100 days after the roll out of GST, here are some measures that could help smoothen the experience for taxpayers and tax administrators

Exemption limit on procurement from unregistered dealers

Under the GST regime, requirement to pay tax under reverse charge by registered recipient of goods or services in respect of procurement of goods from an unregistered vendor has been proposed to be deferred till March 31, 2017. 

Though the deferment is a welcome move, the provision should be abolished completely as the same leads to unnecessary increase in compliances and is anyways available as tax credit thereby being revenue-neutral.

Procedural gaps to be covered

India’s largest tax reform is yet to be fully put in place, thanks to patchy technical implementation. Systems