You are here: Home » Economy & Policy » News » GST
Business Standard

GST has not affected prices, but increased compliance burden: KPMG survey

KPMG surveyed 232 CEOs, co-founders, CTOs of companies.

Indivjal Dhasmana  |  New Delhi 

GST
GST

Most of those responding to a survey believe that prices remained as it is under the regime compared to the previous regime. However, those who believed that prices have come down were less than those who think that prices have risen under the regime.

As many as 43 per cent of those surveyed by consultancy KPMG thinks that prices remain neutral under the regime, while 33% say prices have increased. Only 24% believe that prices have come down.

As expected, overwhelming 87% says has increased compliance burden, while 13 per cent thinks otherwise. KPMG surveyed 232 CEOs, co-founders, CTOs of companies.

graph

As many as 53 per cent of respondents to a survey is not clear about provisions. Only 33% of those surveyed were clear about the provisions.

Seventy per cent says the government should have implemented provisions with complete computation guidelines being made available to the Industry even before implementation of GST, 36% say the provisions should have been restricted to select sectors where B2C supplies are involved.

Ten per cent respondents to the survey say provisions should not have been implemented at all.

The mechanism under is a three-stage process. There is a state-level screening committee for local complaints and a standing committee for national-level complaints; then, an investigation by the Directorate General of Safeguards, and then a probe by the decision-making body, the National Authority.

The authority has so far got 169 complaints alleging that suppliers of goods or services have not passed on benefits to customers. The Director General of Safeguards, the investigative arm of the Department of Revenue, has sent notices to some companies.

There was almost a tie on respondents' satisfaction about various deadlines given under the regime While 51% respondents say they are satisfied, the remaining 49% of those surveyed were not satisfied.

There was almost a unanimity among respondents that Network portal be made more effective. As many as 95% says it can be, while 5 per cent was of the opinion that the portal cannot be made more effective.

Overwhelming 71 per cent of those surveyed says that error report should be generated instantly while filing returns and it should be easier to understand. As many as 64% says response time of the portal should be improved while downtime should be reduced.

On transitional credit, 45 per cent respondents say they are not clear about eligibility to carry forward stocks lying at various points of time.

One of the aggrieved constituencies of is the exporting community. As many as 45 % of those covered says does not provide incentives to exporters, while 33 per cent disagree. As many as 74% finds the biggest problem faced by exporters under the regime is blockage of credit and working capital.

First Published: Sat, February 24 2018. 00:37 IST
RECOMMENDED FOR YOU