FICCI vouches positive impact of GST on business logistics

Monday 19th February 2018 08:32 EST

The Federation of Indian Chambers of Commerce & Industry (FICCI) conducted a survey of enterprises post the implementation of GST, for answers on various issues that are being faced by the industry following India's transition to the Goods and Services Tax regime. Both, MSME and large corporates participated, providing first-hand experiences within the first six months after implementation.

In positive news for the Modi government, results indicated that the GST had a positive impact on the businesses' logistics. Over 60 per cent respondents stated that their experience with respect to inter-state transportation of goods has been good in terms of check-posts. Over 50 per cent respondents mentioned that goods vehicles are no longer stopped and checked at state borders, and 59 per cent respondents have cited reduction in transportation time after GST has been implemented. Of the over all participants in the survey, 59 per cent respondents to the survey comprised of MSME firms while, the other 41 per cent were large firms.

Issues were also brought to light regarding implementation of the tax system, with the industries highlighting glitches in GSTN portal, cumbersome procedures and documentation and cost of compliance cited as the major areas of concern. Issues with robustness and volume handling capacity of the GST portal were pointed out by all the respondents. Major challenges were delayed reflection of updated data as well as payments, delays in process of input credit set offs, inability to upload heavy files of certain formats and lack of provision to modify or revise errors. A major revamp of the portal suggested by the respondents to make it more efficient.

Also, the monthly filing of GST return was cited as a long procedure, with 78 per cent of respondents suggesting the periodicity of return filings for those taxpayers having aggregate turnover above Rs 1.5 Crore to be changed from monthly to quarterly.

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