Praising various efforts for successful transition of businesses to the goods and services tax (GST) regime, Confederation of Indian Industry (CII) director general Chandrajit Banerjee has urged the government to extend the provisional input tax credit period by six months from the current two for convenience of micro, small and medium enterprises (MSME). 

That will help cross matching of invoices through the GSTN portal and also save the blockage of the working capital for the small players, he said. 

Filing of GST return may be made on a quarterly basis instead of every month as the MSME sector is still not well equipped with the required IT infrastructure and a qualified manpower, a recent CII press release quoted Banerjee as saying. 

Under the reverse charge mechanism (RCM), threshold exemption for payment of tax may be increased from the present Rs 5000 to Rs 50,000, which will help ease burden of excessive compliances. Format of returns may also be simplified, suggested Banerjee. 

The government may consider special initiatives for promoting exports, including by addressing teething troubles for exporters under the GST regime, he said.

Source: Fibre2Fashion