State GST dept holds meet to tackle issues

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The Maharashtra State Goods and Services Tax (SGST) Department has started holding weekly meetings with the Federation of Indian Exporters (FEI) to address the problems faced by exporters under the GST regime. The first such meeting was held in Mumbai on Wednesday.

“Nodal officers will meet members of FEI every week for the next few months to understand the problems faced by exporters, especially with regard to input tax credit (ITC) refund under the GST regime. Exporters are facing problems with regard to refund under GST and have submitted maximum refund applications in the country. Nodal officers can understand the issues which can be taken up with the Centre,” commissioner, SGST, Mumbai, Rajiv Jalota said.

Jalota was speaking on the sidelines of a GST open house organised at Mahratta Chamber of Commerce Industries and Agriculture on Friday.

Several exporters raised issues pertaining to absence of rebate on exports under advance authorisation, registration requirements for companies with office in one city and supply set up in another city, compensation cess for automobile industry dealing in exports and other related subjects.

Answering a question on the unavailability of ITC on all business expenses, available under MahaVAT, in the GST regime, additional director general, GST, New Delhi, Yogendra Garg said, “Maharashtra tax laws were more liberal. ITC on all business expenses is an ideal system which we should aim for but on the way, we have to face some hardships. We are trying to increase the scope of credit.”

Speaking about exemptions for the small scale sector earning revenues below Rs 10 lakh, PK Jain, additional director general, directorate general GST Mumbai, said, “Under GST, registration and tax liability go hand in hand. If you want exemption, do not register under GST. If you register, you are liable for taxation,” he said.

Jain stated that if traders and businesses keep making requests for reduction in tax rates, we will never be able to arrive at a single tax rate. “Multiple tax rates were suggested and implemented to make the process of transition into the GST regime smoother. Moving along, we should be able to have a single tax rate at 16, 17 or 18%,” Jain stated.

Traders also raised several issues with regard to the deadline for filing of Tran-1 and Tran-2 returns. “Several persons faced validation errors while filing Tran-1 returns on GSTN and these cases are under consideration at the moment. However, extension of deadline for filing of Tran-2 returns is not in our hands and a representation can be made to the GST council for the same,” said Kajal Singh, executive vice-president, GSTN, New Delhi.

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