Is there any need of improvement in GST?

Nothing in this world is perfect but we ca definitely work towards attaining perfection. Ever since the GST has been launched in India. A series of demands from domestic businesses has been addressed, which clearly indicate government's openness. Despite revision in rates, extended deadlines for filing of returns, GST remains work in progress till date.

Some improvements, which a lot of experts would also agree with me, can make it one of the most robust taxation system in the world.

1. Eliminate complexities: India is a vast country, like any system of this size and complexity, GST needs constant improvements. Without getting it online, the vices of the earlier system will reappear. In addition, we need to revisit the rules and forms, rates and thresholds. Addressing these five concerns will cut operational cost, reduce GSTN’s load and help small firms.

2. Uniform Tax: With GST in place, imports considerably cheaper than raw materials domestically. Many raw materials attracts 18% GST while tax is 12% on finished products. Hence, for domestic business owner, effective tax is much higher than importing a finished good from overseas.

3. Automate GST refund on exports: Currently, the government of India collects GST from exporters just to refund them back. Because GST is a tax for domestic consumption while exports goes outside India’s territory.

4. Ease rate structure: We have 5 different slabs for under the purview of GST. Reducing the number of rate categories will make tax administration easy.

5. Fix GSTN functionality: Last but not least. If government wish to make GST implementation a success, it needs to fix GSTN immediately. Companies were to file periodic online returns, pay GST and be done away with it. But as the GSTN is still not fully functional, manual processes crept in to keep the business going.