By TIOL News Service

NEW DELHI, JULY 06, 2018: WHILE addressing a gathering at FICCI today, the Revenue Secretary, Dr Hashmukh Adhia, said that work is being done to make GST refund process fully automatic. Continuous efforts are being made to simplify the GST system in the country, he added.

Dr. Adhia added, "We have gained in the process of simplification by introducing GST, but that does not mean there is no scope for betterment of the existing system. A lot more needs to be done."

On simplification of rates and slabs he said, "We understand the need of it but we did our best in the given scenario, keeping in mind the revenue and societal concerns of economically poor class."

Mr. Sandip Somany, Senior Vice President, FICCI and Vice Chairman & CMD, HSIl Ltd., said that the results of FICCI survey on one year of GST show that implementation of GST has been successful on overall basis with 76% respondents stating that GST had a positive impact on their business. Also, 96% respondents believe that introduction of e-way bill mechanism in lieu of check posts will facilitate ease of doing business.

In terms of the impact of GST on business operations, sales and employment, the survey findings are quite optimistic. 43% of survey respondents stated that GST had positively impacted the demand for their goods and services as against 17% who reported a negative impact. Further, 63% of the respondents stated that the introduction of the tax had impacted pricing positively, while the remaining 37% stated otherwise. Additionally, even though 64% respondents stated that there was no major impact on employment post-GST implementation, other respondents cited a positive impact on the back of increased demand for skilled workforce to comply with various aspects of GST accounting and return filing.

The supply chain and logistics have also been streamlined since the implementation of GST. About two-third of the respondents have reported either no change or decrease in their supply chain costs post the implementation of the survey. Furthermore, 64% respondents to the survey have cited a reduction of transportation time under the GST regime. Of these, 56% respondents cited reduction in transportation time by up to 10%, 25% respondents stated reduction by 10-20% and 19% stated a reduction in transportation time by 20-40%.

Amongst the key issues faced with respect to GST implementation, the industry has highlighted glitches in GSTN portal, cumbersome procedures and documentation, and cost of compliance as the major areas of concern that need to be addressed.

Respondents of the survey pointed out issues with the robustness and volume handling capacity of the GST Portal. Problems like delayed reflection of updated data as well as payments, absence of effective mechanism to resolve issues, inability to make corrections after submission of returns in case of errors were highlighted.

Respondents suggested that a major revamp of the portal was necessary to make it more efficient. Specific suggestion for improving operation of GSTN portal include improving server capacity as well as making it more user friendly, with an interactive interface.

E-way bill mechanism has been welcomed by industry, with 96% respondents mentioned that e-way bill mechanism in lieu of check-post is more effective.

Respondents to the survey gave following suggestions for improvement in GST regime:

1. Simplify the return filing process and minimise the number of returns to be filed.

2. ITC flow should be seamless and the recipient of goods/services should not be penalized for non-payment of taxes by supplier.

3. Shipping bill wise details are not available to the assessees for refund received through bank due to which assessees are facing issues in reconciliation. Necessary steps to resolve this issue must be taken.

4. Refund Procedure including submission of documents should be made online.

5. Remove original invoice reference against credit note/debit note. One credit/debit note should be allowed to be issued against multiple original invoices.