The Economic Survey 2023, tabled before the parliament by the Financial Minister Nirmala Sitharaman reviews the performance of the Indian economy to date and lays the road ahead for the next fiscal year.
Among many statistical reports and reviews of the economic policies of the Government, the survey also showcased the measures taken for facilitation of trade and ease of doing business.
The following reforms were carried out to facilitate trade, as per the survey report:
● Retrospective amendment made in section 50 of CGST Act with effect from 01.7.2017 to provide the interest is required to be paid on the wrongly availed ITC only when the same has been availed as well as utilized.
● Rate of interest on wrongly availed and utilized ITC reduced to 18% from 24% with retrospective effect from 01.7.2017.
● Vide Notification No. 14/2022-Central Tax dated 5.7.2022, UPI & IMPS have been provided as an additional mode for payment of GST to facilitate taxpayers and to further encourage digital payment by amending Rule 87(3) of CGST Rules. This will provide them flexibility and case in making their GST payment.
● Transfer of CGST/IGST cash ledger balance has been allowed between ‘distinct persons’ (entities having the same PAN but registered in different states). Facility has been provided for withdrawal of refund applications made under GST by the taxpayers.
● Facility has been provided for withdrawal of refund applications made under GST by the taxpayers.
● In GST, a mechanism has been prescribed for refund of accumulated ITC on export of electricity.
● Procedure of sanction of IGST Refund in case of export of goods, where the exporters have been identified as risky, has been streamlined, to expedite verification and processing of such claims.
With a view of improving the ease of doing business, reportedly, the following measures were taken by the government:
● Threshold for mandatory issuance of e-invoice has been reduced to ₹10 crore from 01.10.2022.
● To facilitate small taxpayers in making supply of goods through e-commerce operators (ECO), and to provide parity in intra-state offline and online supply of goods, in-principle decision has been taken for waiver of requirement of mandatory registration under GST for intra-state supply of goods through ECO’s Composition taxpayers would also be allowed to make intra-State supply through ECOs subject to certain conditions.
This will open the huge e-commerce market for the small taxpayers to sell their goods without getting mandatory registration which will boost small business.
“These changes would be notified in due course of time, as it would require amendment in GST provision, as per recommendations of GST Council, and technical change on portal and also by ECOs”, the economic survey stated, leaving the GST composition taxpayers room to anticipate for easier trade environments, without having to get mandatory registration for intra-state supplies through E-Commerce Operators.
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