Don’t penalise for mistakes during GST changeover: Assocham

Don’t penalise for mistakes during GST changeover: Assocham

New Delhi:

Seeking adequate time for the required compliance of the Goods and Services Tax (GST) regime, an industry organisation said that penal provisions should not be applied for unintended mistake during the transition phase, as was done in the case of service tax for a few years.
“In such a mega tax reform, there will be requirement to issue clarification on various GST provisions and hence the governments at the Centre and states should gear up for such facility,” Associated Chambers of Commerce and Industry of India (Assocham) President Sunil Kanoria said.

“Moreover, the penal provisions for unintended mistake during the transition phase should not be applied as was done in the case of service tax for few years,” he said in a statement here on Friday.

Assocham will bring to the notice of Empowered Committee (EC) of State Finance Ministers, the concerns in this regard while pleading for waiver of any penalties on unintentional compliance errors during the transition period, the statement said.

The meeting of Empowered Committee (EC) of State Finance Ministers will be held on August 30.

“Considering significant increase in documentary requirement and digitisation of the entire GST process, industry has to gear up and change their accounting and computer system after the GST rules are released,” Kanoria said.

“While the tax base is same for central GST and state GST, the administration by two authorities may lead to harassment if there is difference of opinion,” he said, adding, “It is recommended that the Centre and state can form joint team for such purpose.”

–IANS

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Don't penalise for mistakes during GST changeover: Assocham | NORTH INDIA KALEIDOSCOPE

Rajesh Ahuja

I am a veteran journalist based in Chandigarh India.I joined the profession in June 1982 and worked as a Staff Reporter with the National Herald at Delhi till June 1986. I joined The Hindu at Delhi in 1986 as a Staff Reporter and was promoted as Special Correspondent in 1993 and transferred to Chandigarh. I left The Hindu in September 2012 and launched my own newspaper ventures including this news portal and a weekly newspaper NORTH INDIA KALEIDOSCOPE (currently temporarily suspended).