ADITYA RAJ DAS / NEW DELHI
The All India Tax Advocates Forum (AITAF) has urged the government to further rationalize the GST rates to bring down the overall price level and improve the competitiveness of Indian goods and services in the global market.
“While one appreciates the efforts of the government to prune down the list of items under 28 per cent slab, still there is a need to further rationalise the tax rates as certain items of mass consumption like colour television sets and air conditioners etc still falling under the highest tax slab,” the AITAF President M K Gandhi said in a statement issued here.
“It may not be feasible to strictly follow the single tax rate GST structure prevalent over most of the globe in India because of diverse nature of its population, yet the highest tax rate slab of 28 percent is totally unacceptable barring those items like, cigarettes tobacco and items like luxurious cars, Gandhi, a noted tax consultant said.
Besides such a high tax rate would adversely affect the competitiveness of Indian goods in the global market, he said.
Drawing the attention of the Finance Minister to other pressing issues concerning GST rules and procedures, the AITAF Chief urged the government to urgently introduce necessary reforms to further simplify the return filing system and matching of credits.
For instance, he said the format of the GST 3B the final return showing the consolidated GST liability for the taxpayers continues to be cumbersome and complicated. At present it virtually leaves no scope for reconciliation for finalising the ultimate tax liability thereby causing confusion and ambiguity in the minds of tax payers.
In order to save the business community from avoidable harassment and litigation in claiming Input Tax Credit, Gandhi advocated to ensure harmonisation of system of return filing and matching of credit./