New Delhi [India], Dec 6 (ANI): The Goods and Services Tax (GST) Law Panel on Wednesday put forth its suggestions to Revenue Secretary Hasmukh Adhia, suggesting around 100 major changes in the GST Act.
The panel received around 700 representations citing various problems faced by the industry with regards to filing returns, e-way bills, input tax credit and exports.
Some of the recommendations are as follows:
1. Reverse Charge Mechanism should be abolished.
2. E-Way Bill should be deferred till 2019 and efforts may be made to bring some alternate method in place of this.
3. Inter-state transactions should be allowed in Composition Scheme.
4. 1 percent tax in Composition for Traders, Manufacturers and Restaurants.
5. Refund process should be automated.
6. In place of all types of returns, there should be one consolidated return.
7. Return process should be simplified and rationalised.
8. The ITC should be released within the same month. Matching and adjustment may be done later.
9. Form 3B should be continued at least for one year.
10. Return should be filed quarterly but tax may be paid monthly.
11. Doing away with HSN code in the invoice for easier return filing.
12. Classification of items should be such that the raw material and finished product are in the same slab. This would make refunds faster.
13. Exempted or Nil rated goods should not be counted in Aggregate Turnover.
14. All job work should be taxed 5 percent.
15. Service Providers should also be allowed to take Composition Scheme.
16. Allow revision in Returns.
17. Panel recommends the formation of a National Advance Ruling Authority.
18. Search/Raid should be conducted only if authority has credible evidence against a person. Raid should be conducted only with orders of the Commissioner.
19. Scrutiny of Returns should be o.5 to 1 percent only.
20. Registration of persons even after July should be granted registration with retrospective effect from July 1 this year.(ANI)