The Institute of Chartered Accountants of India (ICAI) has submitted as many as 121 suggestions on various topics under Goods and Services Tax (GST) to Interim Finance Minister Piyush Goyal. The accounting body has suggested that all goods, including petroleum, alcoholic liquor, and electricity, should be brought under the GST at the earliest. Other laws governing the levy of taxes on these 'non-GST goods' should be repealed, it said.
The ICAI has also given suggestions to simplify the GST law, GST compliance, system integration and testing, delay in response from GSTN helpdesk, among others.
The ICAI said policy, law and procedural related issues on GST have been identified by those involved in the GST implementation, based on which it has proposed some changes in the overall GST structure.
On the simplification of the GST law, the ICAI said it should be made less complex so everyone -- from a layman or an unorganised taxpayer to big businesses -- can understand it without any help from a tax expert.
The national professional accounting body of India said that compliance under the GST law should be transparent, which would ease out compliance process and cut cost.
Considering the bulk of enquiries made to the GSTN help desks, the GSTN helpdesk is overloaded. The body said the government should deploy additional manpower to address issues at the earliest, which would lead to its smooth functioning.
The accounting body said officials need to be trained on tax terror problem prevalent in India, in addition to introducing a proper exam for these officials to ensure qualified candidates are hired by the organisation. Those who listen to or adjudicate complaints should also be given special training, said the ICAI.
New rules should be framed regarding 'third country trading or manufacturing', which it said should be exempted from GST implications. On the issue of taxability of transferable development rights, the ICAI said a clarification should be issued that Transferable Development Rights (TDRs) are not taxable under the GST laws as they are immovable property rights.
'Job work' means any treatment undertaken by a person on goods belonging to another registered person. "By this, it appears to cover any repair, maintenance, etc. A provision must be inserted to the definition of 'Job Work' to say it will not include repair or maintenance," said the body.
Other topics touched upon the accounting body include 'classification and exemption', 'scope of supply', composite and mixed supply', composition levy', tax invoice, IGST levy and collection, etc.