Simplify GST compliance procedures: Agro Food Chamber

By: Admin
May 04, 2024
Categories: GST Recent News
4 Min Read

The Agro Food Chamber had appealed to the Union government to simplify compliance procedures and rationalise tax rates of the Goods and Services Tax rates, said its founder-president on Friday.

In a press release, he said that with the GST collection in April, 2024 having surpassed the ₹ 2 lakh crore for the first time since its inception, the chamber opined that the increased collection was not only attributable to the growth in economy, consumption and compliance but also to the higher rates of taxation than the profit margin and heavy penalty made to pay by traders on account of unintelligible and complicated provisions of the Act.

The consumers have no other option except to pay this heavy indirect taxation amount through their nose, he said and added that the increased tax collection was an indication to take remedial steps for rationalisation of tax rates and simplification of compliance procedures.

He suggested that other than tax exemption, there should be only three GST rates, viz. 5, 10 and 15 for goods and services, besides higher rate for sin goods. All agricultural food produce in its primary form, either in the hands of farmers or traders till it reaches the consumers, and all other essential commodities should be fully exempted from GST.

All processed and value-added manufactured food products and other goods of importance for day-to-day life should be brought under 5% GST rate. All other goods and services should attract GST rate of 10%. Luxurious goods should be taxed at 15% sin goods may be changed at a much higher rate restricting consumption.

The benefits of Input Tax Credit (ITC) should neither be denied nor restricted to any assessee, as this is the basic concept of GST, to avoid cascading effect on the price due to tax on tax.

In consultation with trade and industry, GST Act and Rules should be simplified to reduce cost of compliance, He said and requested the new Union Government to be formed in June to take up the next generation GST reforms, immediately on taking charge to sustain and accelerate growth of our economy towards ‘developed India’.

Source from: https://www.thehindu.com/news/cities/Madurai/simplify-gst-compliance-procedures-agro-food-chamber/article68135981.ece