Hyderabad: Even as the Goods and Services Tax (GST) is completing one year, MSMEs (micro, small and medium enterprises) in Telangana state and Andhra Pradesh are still finding it difficult to file returns every month.
The multiple returns are complicated and expensive to fill for small units, according to the Federation of TS and AP Chambers of Commerce and Industry (FTAPCCI). The federation has asked the Centre to open more help centres to ease the process. MSMEs want GST officials to speed up the process during the non-drive periods as well.
While Hyderabad holds the leading position in the refund process, Visakhapatnam lags behind and this shows organisational imbalance in GST system, observed an entrepreneur.
Out of over three lakh GST assesses, including SGST and CGST in Telangana state and AP, there are about 70,000 MSMEs. A majority of them are unable to file returns properly. This is mainly due to lack of awareness and infrastructure support, said Abhay Jain, chairman, GST and Customs Committee, of FTAPCCI.
The Central Board of Indirect Taxes and Customs has established help centres (GST Seva Kendras) in 30 divisions in the states.
“The good thing is that several MSMEs have started filing returns, but are facing multiple problems such as technical glitches and errors in entering data. A majority of MSMEs can’t afford to hire CAs and accountants for filing GST returns. The expenditure to file GST returns varies from '5,000 to over '10,000 every month, Mr Jain said.
The federation urged the Central and state governments to open more help desks to support MSMEs in filing returns. During special drives, export refund process has been speeded up and is benefiting units below Rs 5 crore turnover, Mr Jain said.
Sector wants tax refund camps
The ITC refund drive taken up by CBIC was providing respite to the industry.
An exporter said that it was cumbersome to file an application for ITC refund owing to technical glitches. “Generally, input tax credit and exports happen in different months. Then a major challenge lies in getting an ITC refund especially because the process is partly electronic and partly manual. This is creating technical complexities, while enhancing the transaction cost as well,” he said.
The amount sanctioned against the count (number of applications for refund) was almost 80 per cent in Hyderabad and Mumbai, while it was about 20 per cent in Visakhapatnam.
Chennai and Nagpur reached the 80-per cent mark in the ITC refund amount sanctioned during the latest drive by CBIC. “This highlights the gaps in the government mechanism and the industry as well,” Mr Abhay Jain, chairman, GST and Customs Commi-ttee, of FTAPCCI, said.
Chief commissioners and commissioners of Vizag and other zones that fell below the national average have been asked to improve the performance in processing the ITC refunds.
GST assesses say that only during refund drive periods, the process had speeded up, but it was very slow during normal months. The officials come out with such data during such special drives, said an entrepreneur from Balanagar industrial area.
The CBIC is organising a special refund fortnight till June 14, ensuring quick processing of ITC refund applications. MSMEs are hoping that the second phase of ITC refund will address several issues that they are facing.
The board had carried out a drive in March to clear refund applications.
