The Goa Chamber of Commerce & Industry (GCCI) has submitted a comprehensive memorandum to Hon. Chief Minister of Goa, Dr. Pramod Sawant, outlining key suggestions for reforms in the Goods and Services Tax (GST) regime to be considered at the upcoming GST Council meeting.
The memorandum, submitted by GCCI President Mr. Shrinivas Dempo, presents practical proposals aimed at improving ease of doing business, simplifying compliance, and addressing long-standing concerns from industry sectors such as tourism, exports, real estate, and IT.
Among the notable recommendations made by GCCI are:
- Rate Rationalisation: A call for simplifying GST rate structures to reduce tax burden, correct inverted duty structures, and eliminate cascading tax effects.Due to the significant effect that the rationalisation may have on the industry, GCCI also recommends a phased roadmap which would allow businesses to gear up to the new rates.
- Return Revision Facility: Urging the government to allow revision of GST returns to correct genuine errors and reduce litigation.
- Support for Exporters: Requesting refund of GST paid on capital goods used for zero-rated exports to ease working capital constraints.
- Boost to Tourism: Proposals to bring all hotel accommodation under a uniform GST rate of 12% and allow standalone restaurants to opt for 12% GST with input tax credit.
- ITC on Hotel Construction: Seeking input tax credit on construction services for hotels, home-stays, and warehousing.
- Real Estate Reforms: Suggestions to address ambiguities in joint development agreements, procurement thresholds, GST on unsold inventory, and taxation on long-term leases.
- Inverted Duty Structure Relief: Urging mechanisms to ease working capital issues caused by mismatch in input and output tax rates.
- Improved GST Returns: A request to redesign GSTR-9 and 9C forms to reduce complexities and prevent unwarranted litigation.
- Clarification on Promotional Goods ITC: Recommending clarification on the eligibility of input tax credit on business promotional items.
- GSTN System Improvements: Proposals for enhanced reporting features and technical capabilities on the GST portal for better compliance and reconciliation.
- Interest Relaxation: Suggesting changes to the interest liability provisions on ITC reversal where supplier payments are delayed beyond 180 days.
GCCI expressed its appreciation to the government for the successful implementation of GST over the past seven years and highlighted that current revenue buoyancy and system maturity present an opportune moment for taking bold, industry-friendly reforms.
Mr. Dempo reiterated GCCI’s willingness to assist the government in refining these proposals and expressed confidence that the Hon. Chief Minister would champion Goa’s voice at the GST Council.
The above representation has been handed over to Hon. CM of Goa by Mr. Shrinivas Dempo , president GCCI in presence of GCCI taxation & Financial Services Committee chairman CA Rohan Bhandare & GCCI Director General Mr. Sanjay Amonkar.