PANAJI
The Goa Chamber of Commerce and Industry (GCCI) has urged the State government to recommend to the Union government a rationalisation of the Goods and Services Tax (GST) slab, with the aim of reducing compliance burdens and removing the cascading effect of taxes.
In a detailed memorandum submitted to Chief Minister Pramod Sawant, the GCCI outlined key suggestions for reforming the GST system. One of the main proposals is to apply a uniform 12 per cent GST rate on all hotel accommodation and to allow standalone restaurants to opt for the 12 per cent GST with input tax credit.
The proposals, submitted by GCCI President Shrinivas Dempo, are intended to make it easier to do business, simplify compliance processes, and address long-standing concerns in sectors such as tourism, exports, real estate, and information technology. The suggestions come ahead of the upcoming GST Council meeting.
A major recommendation is to simplify GST rate structures to reduce the overall tax burden, correct inverted duty structures, and remove the cascading impact of taxes.
“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,” the memorandum stated.
To boost tourism, GCCI has again proposed a uniform 12 per cent GST rate on hotel accommodation, and an option for standalone restaurants to adopt the same rate with input tax credit. It has also sought input tax credit on construction services used for hotels, home-stays, and warehousing.
The Chamber has requested that businesses be allowed to revise GST returns to fix genuine errors and avoid legal disputes. “Requesting refund of GST paid on capital goods used for zero-rated exports to ease working capital constraints,” it said, also urging a redesign of the GSTR-9 and 9C forms to make them simpler and reduce unnecessary litigation.
Further recommendations include clarifying rules related to joint development agreements, procurement thresholds, GST on unsold inventory, and taxation on long-term leases.
“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,” it said.
GCCI also said it is willing to assist the government in refining these proposals.
