Srinagar: The Federation of Chambers of Industries Kashmir (FCIK) has advocated for allowing input credit to MSMEs on the proof of their purchases without tasking them with the responsibility of ensuring supplier compliance.
An interactive session of FCIK delegation was held with the Commissioner P.K Bhat, Additional Commissioners Ali Afsar Khan, Shakeel Maqbool and Deputy Commissioners of the State Taxes Department on Friday. The delegation of FCIK was led by its former president and Advisory Committee Member Zahoor Ahmad Bhat and included Ovees Jami and others.
While projecting the difficulties faced by MSMEs on denial of the benefit of input tax credit until their supplier have actually deposited the tax with the government, Zahoor Bhat argued that the filling of returns and payment of due tax devolved on every taxpaying vender in the country failing which they were subjected to penalties and other damages. He asked if the GST law was so tough on defaulters, then why the Tax department shouldn’t consider grant of input tax benefit on very production of valid invoices from the suppliers in order to save MSMEs from putting in extra efforts and financial stress.
FCIK has also demanded for evolving a mechanism to facilitate MSMEs with input credit of the tax subsumed in the prices of goods purchased from unregistered vendors. Whereas, the unregistered
While making a demand for minimizing the high compliance burden in GST laws and rules, FCIK demanded for making these industry-friendly in consonance with the parameters and spirit of ease of doing businesses more so in consideration of the fact that majority of micro and small units lack high end facilities in their units.
A number of issues pertaining to filling of returns, e-way billing, tax on advances and the notices issued by department came under discussion at length.
FCIK also demanded a simple and smooth mechanism for disbursement of SGST in favour of eligible MSMEs of J&K. A demand was made for evolving and approving an alternative mechanism, preferably cashless, for reimbursement of SGST to eligible MSMEs.
FCIK also raised the issue of amnesty to be granted for any lapses of defaults under GST regime since its inception and in this regard solicited the support and recommendations of J&K government to GST council and other competent authorities.
While conveying gratitude for grant of amnesty under Pre-GST regimes, Ovees Jami demanded for grant of extension in the scheme till March 2024. He also sought clarification on eligibility criteria and some other issues that come in the way of settlement by assessing authorities. Jami informed the meeting that manufacturing enterprises were exempted from VAT under remission mechanism and had rarely any tax liability against them. He also reminded that the government had promised MSMEs clean slate for all previous tax regimes before making transition into current GST regime.
The Commissioner State Taxes Department assured of full support and cooperation of his department to the MSMEs to find out simpler and friendly ways for compliances. He assured that the points raised by FCIK would be taken up with relevant quarters for seeking redressal.