JANUARY 23, 2018

By B Giridharan, Royal Enfield, Chennai

THE following points are our budget suggestions.

1) The rate of duty for two wheelers and parts need to be reduced from 28% to 18%.

2) For all items 8 digit HSN codes should be introduced as followed in our earlier excise tariff. Since the rates of duty are changing within 4 digit HSN, it will lead to confusion in adopting the rate. Two different GST rates for a single item will lead to confusion and need to be changed and for each item applicable rates to be adopted based on 8 digit HSN code.

3) Second hand car sale rate should be lesser than original rate and require change in valuation rule. It should be realizable value not open market car value. At the same time the rate of GST also should be lesser than the original rate.

4) Clarity required on Warranty Parts and Labour.

5) Clarity required on applicability of Service and Labour done at service station by allowing to charge different GST in the same Invoice (Parts + Labour)

6) For the items received as individual parts the rate is different whereas it is cleared as two wheeler parts the rate is changing. Hence to avoid this issue the same rate is to be adopted for all two wheeler parts as per the usage (nomenclature).

7) For Job-work materials despatch and receipts simple procedure should be followed without updating in portal.

8) For service also 6 digit HSN code need to be updated for each and every services. This will be very much useful to all Industries to adopt the rate in system based on service wise HSN and Rate.

9) Reverse Charge Mechanism should be abolished.

10) E-Way Bill should be deferred till 2019 and efforts may be made to bring some alternate method in place of E way Bill.

11) In place of all types of returns there should be one consolidated return and return process should be simplified and rationalised.

12) Consolidated debit note instead of Invoice wise debit note.

(The views expressed are strictly personal.)