GST Panel Suggested Tweakings in GST
The GST Panel recommendations are of a six member advisory group set up by the ministry of finance on November 2 on proposed changes in the GST Act.
A GST panel has recommended to the government that reverse charge mechanism should be abolished, e-way bill should be deferred till 2019 and traders opting for composition scheme should be allowed to undertake inter-state transactions.
These are the recommendations are of a six member advisory group set up by the ministry of finance on November 2 on proposed changes in the GST Act.
The group was headed by Gautam Ray, retired chief commissioner of Central Board of Direct Taxes (CBDT) and had members which included CAIT secretary general Praveen Khandelwal, Araghya Sen Gupta (Research Director, Centre for Legal Policy) and Vinod Jain (CA) among others.
The group has said that refund process should be automated. In place of all types of returns there should be one consolidated return, return process should be simplified and rationalised and input tax credit should be released within the same month (matching and adjustment may be done later).
It has recommended that classification of items should be such that the raw material and finished product are in the same slab. This would make refunds faster.
All job work should be taxed at 5 per cent and service providers should also be allowed to take composition scheme.