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GST: small firms may get time to file returns: (The Hindu)
Context:
The union government is considering a proposal from the industry to allow small firms to file quarterly returns even as they pay taxes on a monthly basis under the Goods and Services Tax (GST) regime.
Problems small firms are facing today:
The small firms are facing following problems:
- Small firms are facing problems regarding complying with the GST norms due to their limitations in getting professional help, lack of connectivity and technological glitches.
- Lack of IT infrastructure and a qualified manpower.
Demand of merchant exporters:
- Federation of Indian Export Organisations (FIEO) raised demands including seeking exemption for merchant exporters from GST.
- Merchant exporters account for over 30% of country’s exports who usually work on razor thin margins of 2-4%.
- The imposition of GST has made their costing go haywire, particularly for products having higher GST rate, as they have to pay GST and seek refund after some time lag.
- They also wanted the Centre to expedite GST refunds to help them tide over the liquidity crunch.
Financial wherewithal
- Most of the exporters, particularly from MSME category, hardly have financial wherewithal to pay GST liabilities for three months without having refund in the meantime.
- For ease of doing business especially for the MSME, provisional input tax credit period may be extended to 6 months from the current 2 months’ period.



