Trade Bodies Demand Simplification of GST Act and Rules
By: Admin | August 27, 2024 | Categories: GST Recent News | 4 Min Read
Trade bodies are calling for the simplification of the Goods and Services Tax (GST) Act and its accompanying rules, emphasizing the urgency of addressing this issue in the upcoming GST Council meeting scheduled for September 7.
The Agro Food Chamber of Commerce and Industry has been vocal about the complexities inherent in the GST Act. According to the Chamber’s President, the Act has become increasingly difficult to understand, even for tax experts, due to numerous notifications, clarifications, and amendments introduced over the past seven years.
Key Concerns:
- Complexity of the GST Act: The President highlighted the intricate nature of the GST Act, which has led to widespread confusion and litigation, particularly regarding the applicable tax rates for different products.
- HSN Code System: The GST is levied based on the Harmonized System of Nomenclature (HSN) code, an internationally standardized system used to classify traded products. The HSN code consists of 21 Sections covering all products, 99 Chapters, 1,244 headings, and 5,224 subheadings.
- Confusion Over Tax Rates: Products classified under different headings and subheadings of the HSN code are subject to varying tax rates under GST, which has led to significant confusion and disputes.
Proposed Solution:
The President of the Agro Food Chamber of Commerce and Industry suggested a simplified approach to addressing this issue. He proposed that tax rates should be standardized across broader sections of the HSN code. This means that all products falling under a specific Section should be subject to a single tax rate, thereby reducing confusion and potential litigation.
The demand for simplification reflects the need for a more transparent and streamlined GST system that is easier for businesses to navigate and comply with.
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