Filing of GST returns on a monthly basis creates problems for small firms especially the micro, small and medium enterprises (MSMEs) due to limitations in getting professional help, lack in connectivity and the use of technologies etc.
Industry representatives said that small firms are the ones that are being hit by GST. They asked the centre to allow for a quarterly returns filing system than monthly returns at present. And refunds for exporters should be based on GSTR-3B, rather than GSTR-1, 2 and 3.
The centre is considering the proposal put forward by small firms and filing of GST returns may be made on a quarterly basis.
According to a source, Chandrajit Banerjee, Director General, CII in a statement said, “Filing of GST return may be made on a quarterly basis, as against the current monthly filing requirement as the MSMEs sector is still not well equipped with the IT infrastructure and a qualified manpower; this small measure will help bring them into the GST mainstream.”
“The availability of credit and cost of credit are the biggest challenges for the MSMEs which have become more alarming as money is borrowed for payment of GST on exports,” Federation of Indian Export Organisations (FIEO) President Ganesh Gupta said in the meeting.
The Confederation of Indian Industry (CII) also said in a tweet that CII recommends 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.
Finance Minister, Arun Jaitley also invited suggestions to improve GST implementation systems to ensure compliance burden does not adversely affect especially the MSMEs.