GST reforms: Suggestions to boost ease of doing business and reduce costs

There should be no restrictions on taking input tax credit (ITC), on the essential principle that once tax is paid, it should either be refunded or go into the ITC chain

In his Independence Day speech, Prime Minister Narendra Modi made many announcements, but the one that caught the attention of the businesses — small and big — was the promise of a Diwali gift by way of next generation goods and services tax (GST) reforms. Daily-use articles will become cheaper and facilities will increase for small businesses and entrepreneurs, he said. His announcement has raised expectations of rationalisation and reduction of tax rates, especially on goods and services of everyday consumption. On reforming some other aspects of the GST regime, here are some suggestions.

 

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