Business Mantra News
The International Federations of Accountants (IFAC) has conducted a survey to find out whether GST rollout brought disruptions among the business community and 64 percent of Indians surveyed answered this question in affirmative. They are of the view that implementation of GST led to interruption among the business community across the country.
The survey was conducted by Harris Poll on behalf of the IFAC from October 30 to November 2, 2017.
Around 76 per cent viewed during the survey that well acquitted accounting professionals are required to file return and for the compliance of the provisions of GST.
It was further noticed in the survey that GST serves good to SMEs as it will subsume indirect taxes and brings more transparency in the tax process, draw projection of production cost and make access to new geographies for business expansion more accessible etc.
The survey found that the SMEs are the backbone of the country’s economy and SMEs may contribute around 50% of the country’s GDP by 2022.
“SMEs make up an increasingly large part of India’s economy and the accounting profession plays a critical role in helping drive small business growth, financial transparency and success in India,” IFAC President Rachel Grimes said.
Apart from survey report, the implementation of GST would remains hurdle for both Government and the business community as they have to face challenges on various fronts like compliance of GST, ambiguity and uncertainty in various provisions of GST and mismatch between tax payout and tax refund also create difficulty as it led to liquidity crunch. The traders and exporters face problems due to frequent changes in GST provisions by the GST council.
Survey adds that a fear factor has also entered in the minds of entrepreneurs due to compliance of various complex provisions like maintenance of books of accounts with inventory in particular, number of returns, high rate of taxes and payment of taxes on monthly basis.
Apart from these factors, transition difficulties in getting excise/export refund set-off on inventory has created disturbances in the supply chain.
But the Government is determined to tackle all these problems and one by one Government is taking steps by rectifying the same and wants to make this scheme a success.