Goods and Services Tax or GST has been rolled out in India. However, the process has not been as smooth as it should have been. Businesses have been impacted since the indirect tax reform came into force in India. Some businesses have been able to cope with the changes in time but majority are yet to adapt to the new system. For this purpose, GST enforcement in country will be relaxed. However, there are three reasons behind relaxed GST enforcement that you should know about. So, here are those.
Relaxed GST Enforcement: Reasons
#1: Temporary Move
Firstly, don’t consider this relaxation to go on forever. The Central Board Of Excise and Customs’ (CBEC) chairperson Vanaja Sarna has noted that GST rollout is not expected to be smooth. This is because the reform is still new. Hence, people will take time to understand the new system, necessitating the need to go slow on the enforcement front. However, she also noted that this relaxation will be only for a period of six months, after which enforcement will become strict.
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#2: Input Tax Credit
Claiming input tax credit seems easy. However, many people are facing trouble in this regard. This can be attributed to the lack of spread of information in this regard. A number of web portals have begun offering such services to ensure more and more people can benefit from the same.
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#3: Compliance Issues
A number of businesses have had to put in place new systems to account for a change in the way they charged for their products/services. As a result, their revenues were adversely affected. However, a large number of businesses are still working on putting systems in place to account for changes brought in by GST. For this purpose, the CBEC has been attending to various queries on Twitter. Also the body is going to come out with a second round of FAQs to address queries in this regard.
So, these are the three reasons why there is relaxed GST enforcement for now. But it will not stay for long. So, move quickly to make your business complaint under the rules laid down as per GST .