CII Urges FM For GST Reforms: Streamline Audits, Relax ITC Norms, Include Petroleum Products
The CII also flagged the need for relaxations in input tax credit norms, highlighting how current restrictions are straining the working capital cycle of businesses.
Industry body Confederation of Indian Industry has pitched for a series of key reforms in the goods and services tax regime during a meeting with Finance Minister Nirmala Sitharaman, sources told NDTV Profit on Tuesday.
One of the major demands was the inclusion of all petroleum products under the GST ambit, a long-standing industry ask that could significantly reduce tax cascading and improve compliance.
The CII also flagged the need for relaxations in input tax credit norms, highlighting how current restrictions are straining the working capital cycle of businesses.
The industry is facing cash flow challenges due to delayed or restricted input tax credits. Streamlining this will offer much-needed liquidity support, a source said.
Additionally, the CII called for simplification and streamlining of audit processes under GST, which they believe would reduce compliance burdens, especially for small and medium enterprises.
The industry body also pushed for the early conclusion of the ongoing rate rationalisation exercise, citing the need for enhanced clarity and predictability.
The meeting comes ahead of the upcoming GST Council meeting, where some of these proposals could potentially be taken up for discussion.
