Now that the Goods and Services Tax (GST) system has been fully implemented, the government is targeting a complete overhaul of rates. This was revealed today by Revenue Secretary Hasmukh Adhia. The complete overhaul of GST rates will be done based on feedback received from various businesses in recent months since the implementation of GST on July 1. The overhaul of GST rate structure would be done in a way that it would benefit small and medium sized enterprises (SMEs). It is the SMEs that are facing the most problems since the launch of GST. Adhia also said that GST itself is a huge overhaul of the taxation system in the country since it has subsumed most other state and central taxes such as excise duty, service tax and VAT. As such, it would take around a year’s time to stabilize.
As of now, the GST Council is facing various teething troubles and compliance issues. It has already been making changes based on feedback being received, and there may be plans to carry out a complete overhaul of the GST rate structure. However, more data may be required to analyze what works best and where. “There is a need for harmonization of items chapter wise and wherever we find there is a big burden on small and medium businesses and on the common man, if we bring them down, there will be a better compliance,” Mr. Adhia said. A preliminary report about the possible changes in the GST rate structure has already been prepared and it would be discussed further before approving and implementing it.