India Inc said Friday the time is right for the GST Council to expand the coverage of the indirect tax regime to all sectors and converge tax slabs.
Petroleum products, electricity, and alcohol for human consumption are some items currently outside the ambit of the Goods and Services Tax (GST).
With the related institutional systems now in place, the time is right for the GST Council to consider further improvement in GST such as coverage of all sectors and convergence of tax slabs", CII Director General Chandrajit Banerjee said.
The all-powerful GST Council Friday extended the tenure of the anti-profiteering authority by two years and approved imposing a penalty of up to 10 per cent on entities not passing on benefits of GST rate cuts to consumers.
The council also decided to allow the use of Aadhaar by businesses to register with GST-Network. Also, it extended the date for filing annual returns under the Goods and Services Tax (GST) regime by two months to August 30 while the one-form new GST returns filing system will be applicable from January 1, 2020.
The thought process laid out by the government regarding its endeavour to bring more items in the ambit of GST regime including simplification of GST Rules and rationalisation of rates is indeed a step in the right direction and would pave the way for simplification and stability under the GST regime, Ficci said.
Besides, Banerjee said the GST Council's decision to introduce e-invoices shall increase efficiency in paying taxes and further boost the formal economy.
He further said the extension of due date for filing of annual return is widely appreciated as the industry found it cumbersome to file the first return having multiple registrations.
Ficci said it is encouraging that the government would soon take decisions on proposals regarding rationalisation of rates on certain items particularly electric vehicles, which would provide a big boost needed for this segment.
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