FICO submitted its Suggestions to GST Council through DETC Ludhiana
Author(s): City Air NewsLudhiana, July 25, 2018: A delegation of Federation of Industrial & Commercial Organization, popularly known as FICO comprising Shri K.K.Seth Chairman, S.Gurmeet Singh Kular President & Shri Rajeev Jain Secretary...
Ludhiana, July 25, 2018: A delegation of Federation of Industrial & Commercial Organization, popularly known as FICO comprising Shri K.K.Seth Chairman, S.Gurmeet Singh Kular President & Shri Rajeev Jain Secretary met Shri Pawan Garg, Deputy Excise & Taxation Commissioner, Ludhiana, and submitted the undernoted suggestions and recommendations to the GST Council through them.
• E-Way Bill (EWB) on Material sent for Job Work:
With the rolling out of E-way Bill on Intra-state movement of Goods, it has become a hardship for our industry where varied components are being manufactured/fabricated through different Job Workers in & around the City. Daily movements of goods to & fro Job Workers need EWB on each such movement. It makes the Compliance a burden for the Industry. Even movement of Goods from one factory to another factory of same assesse requires EWB irrespective of the amount & distance. It makes compliance to the provisions a cumbersome process at the disposal of assesse.
• VAT Refunds:
Industry is deeply bleeding with delayed VAT refunds which are ranging in some hundreds of Crores. Even after the completion of Assessments & issuance of various Circulars in the previous times, Industry is still having just hope in its bucket. This shortfall in Working Capital funds has landed the Industry in the trap of Loans & interest thereon leading to vicious circle of Capital erosion.
• Refund of Inverted Duty Structure:
Our Cycle Industry is paying GST at the rate of 12% whereas majority of the Inputs are purchased at the rates of 12% & 18%. In this Inverted Duty Structured system, Refund of ITC should be given at a faster pace to let the Industry survive in this Throat-cut Competitive Era.
• Uniform GST:
As per our Honorable Prime Minister’s Vision of GST One Nation, One Market One Tax, the GST should be charged at uniform slab ranging from 5% to 12 %, for all trades i.e. for Bicycle & Bicycle parts, Sewing Machine & Sewing Machine Parts, Machine Tools & Machine Tools Parts, Fasteners, Plywood, etc, there should be a uniform rate of GST for all trades, so as to avoid the anomalies of the system.
• GST Refunds:
Getting the GST refunds is a very cumbersome process, the percentage of the refunds issued by the government since the implementation of GST is almost negligible, we request you to kindly simplify the process of refunds in the GST, refunds should either be on the monthly basis, or quarterly basis like income tax refunds, so as to facilitate the industry in this crunch period.
• Petroleum Products under GST:
It is requested to bring the Diesel and other petroleum products under the GST System at the earliest, so that industry could get the benefit of Input Tax Credit on Petroleum products, being used in the industry So that cost of product may reduce and by bringing the Petroleum Products in GST Regime, the daily rising costing can also be controlled.
• GST on Synthetic Yarns:
GST on Synthetic yarns is 18 %, whereas GST on garments is only 5 %, that simply means that Raw material is taxed at 18 %, and finished goods at 5 %, which means the GST refunds are being stuck with the government, and industry is paying huge interests on their bank limits. So it is suggested to reduce the GST on synthetic yarns to 5 %.
• GST on the Steel:
The steel is being taxed at 18%, but the anomaly is that the finished products of the steel are being taxed at 12%, which is also resulting in GST refunds being stuck at the government’s end. You are requested to being the steel and its products under the GST Slab of 12 %.
• GST Slabs of 18% & 28% to be abolished:
It has been observed that the maximum level of GST being charged globally is 19% that too in limited counties, we request you to abolish the GST Slabs of 18 % & 28 %, and there should only be two slabs in the country i.e. either 5 % or 12 %
• ITC reversal
Input Tax Credit Reversal due to Non-Payment to Creditors should be required, if payment is not made within one year, in spite of existing within 180 days.
• Voluntary Disclosure Scheme:
Government should brought a Voluntary Disclosure Scheme for Manufacturers and Traders to disclose their Unaccounted Stocks viz. Raw-Material, Work-in-Process and Finished goods, this will help informal/unorganized sector to become part of formal sector. This scheme can increase government revenue collections, too.