There is scope for review on GST rate slabs which can be pruned from the current five slabs to three, said P.V.Srinivasan, Chairman of Indirect Taxes Expert Committee at Bangalore Chamber of Commerce & Industry, and Advisor at Wipro
The GST Council will meet in New Delhi July 21, where it is expected to further lower taxes.
Experience of the past one year will show that tax buoyancy would improve with a three-rate structure, one rate for a very small number of essentials, one for a very small number of luxuries and a modal rate that will cover most of the economic activity in India, Srinivasan said in a statement that BCIC released today on GST regime completing one year.
“This will largely reduce ambiguity and curb tax avoidance. Further, if GST Council brings the entire petroleum sector under the ambit of GST, tax cascading will get ironed out further.”
According to him, going forward, the task is to remove administrative and procedural bottlenecks especially on issues like delayed input credits, refund claims, filing of returns and so on, which I believe will get eased out in the next couple of months.
“There is no doubt that the new tax will take some more time to stabilize. Considering the overhaul that the tax system has undergone, an altogether smooth transition was not expected. However, the GST Council deserves appreciation for taking pro-active stance in resolving issues that troubled the trade & industry as and when warranted.”
“What is a matter of pride for India is that the very purpose of the launch of GST was to widen tax base and the data shows that GST is well placed to achieve it,” Srinivsan said.