The industry association CII (Confederation of Indian Industry) said today that it seeks redressal of issues around Goods and Services Tax (GST) compliance in relation to the filing of returns, matching the invoices and getting timely input tax credit.
The association feels that simplifying the procedure of GST will lead to higher number of returns being filed, increased collection in revenues and easier management of working capital by industries.
It added that the GSTN (GST Network) functioning can be tweaked to ensure that invoices are accepted.
The CII also said that there is a need for designing a foolproof and effective return filing system where seamless and speedier input tax credit (ITC) can be availed by the recipient, as against the current requirement of filing three GST returns.
In a statement, the CII said that it agrees with Nandan Nilekani's proposals presented in the GST Council. Nandan Nilekani is the founder and non-executive chairman of Infosys. He is also the former chairman of Unique Identification Authority of India (UIDAI).
"If the buyer accepts supplier invoices on the GST System, this automatically determines the input tax credit. In the proposed model, there will be no mismatch or reversal," the statement quoted Nilekani as saying.
"Currently, the buyer is responsible for ensuring tax payment by suppliers to avail ITC. Mismatch in invoices due to filing errors leads to funds being held up. A successful model should align with the natural business process," Nilekani added.
Inputs from PTI