Goods and Services Tax rates need to be overhauled to reduce the burden on small businesses, given that the new system is now firmly implemented, Revenue Secretary Hasmukh Adhia told PTI. He said this will help small businessmen comply with the new rules and accept the GST regime better.
Adhia also said that the GST system will take a year to stabilise. “If you see the experience of VAT [introduction of value-added tax in 2005], there was opposition for one year,” he said. “People were on the streets because nobody knew what VAT is...It was more opposition that time than this.”
The GST Council will consider revising the tax slabs for items as early as at its next meeting in Guwahati on November 10, Adhia told PTI. The revenue secretary said a fitment committee will need to make calculations for an overhaul in the tax slabs and also decide which items would need such rationalisation of rates.
“We are very keen to do it as early as possible, but it depends on how much time the fitment committee takes to work on it,” Adhia said. “They need data [and have to] calculate revenue loss. But harmonisation has to be done. A complete review has to be done.”
In its last major overhaul, the GST Council on October 6 announced a slew of revisions in the new indirect tax structure, mainly targeting small and medium enterprises and exporters, who had made representations to the panel about problems they faced.