Revenue Secretary Hasmukh Adhia has said that a restructuring of GST rates is required to reduce the burden on the small and medium enterprises. Speaking to news agency PTI, Adhia told that the new regime which has substituted more than a dozen central and state taxes would take about a year to stabilize.
“There is a need for revising the rates as it is possible that some items in the same chapter are divided. There is a need for harmonization of items chapter wise, and wherever we find there is a big burden on the small and medium enterprises and on the common man, if we bring them down, there will be better compliance,” Adhia said.
Adhia said that the fitment committee should calculate the items which need rationalization of the rate under the GST regime. The GST council is set to meet for its 23rd meeting on November 10 in Guwahati.
The council in its 22nd meeting chaired by Union Finance Minister Arun Jaitley had announced some significant structural changes in the new tax regime. The turnover threshold for the composition scheme under which businesses can pay tax at nominal rate was hiked from Rs. 75 Lakh to Rs. 1 Crore and the firms with a turnover up to Rs. 1.5 Crore were allowed to file returns quarterly as against monthly earlier.