Streamlining Indirect Tax Compliance: What to Expect in Upcoming Budget
As the date for presentation of the Union Budget 2024 draws closer, industry experts are anticipating changes focused on simplifying indirect tax compliances for businesses. The Goods and Services Tax (GST) regime was implemented to make the tax system easier to navigate, however, certain processes still cause challenges.
Registration under GST involves submission of documents online. However, authorities sometimes demand extra paperwork not mentioned in rules, slowing down approvals. Additionally, requiring senior management to visit facilitation centers for biometric verification in each state increases difficulty. The government could allow verifying identity at any center to reduce time taken.
Paying GST taxes remains a hurdle for overseas businesses serving Indian customers via digital means. Remitting funds internationally and then domestically to deposit with the government extends timelines. An alternative direct payment method through foreign banks could streamline this.
Importers face issues importing goods and claiming related Input Tax Credits (ITC). Details of Integrated GST paid are not updated promptly on the GST portal. This leads to notices being inaccurately sent to importers for mismatch with their records. Timely sharing of payment information between systems needs focus.
While the GST registration portal works online, other Customs procedures like filing refunds and replies are still manual. Developing an integrated digital platform could save time and align with the Digital India mission.
Experts hope the upcoming Budget will propose viable solutions to reduce indirect tax compliance burdens through measures like setting clear timings for investigations and enabling paperless processing across different areas. With amendments expected in both GST law and customs rules, smoother trade and compliance await businesses.
