• Notification Date: 23-08-2023
• Notification No: N/A

World Trade Center Mumbai submits Memorandum before CBIC referring to 12 Major GST Challenges faced by Trade and Industry

The MVIRDC, World Trade Center Mumbai has submitted a memorandum addressing 12 major Goods and Services Tax (GST) challenges faced by the trade and industry before the Customs Board of Indirect Taxes and Customs (CBIC) and the GST Council. It highlighted the issues in complying with the GST laws. The short document outlines the GST law’s shortcomings that apply to export shipments. It is anticipated that the government will address the issues raised by the group and take the appropriate steps. 

The centre has suggested the CBIC to issue clarifications on the 12 GST challenges:  

1. Input tax credit on capital goods  

2. Clarification on GST treatment of Employee Stock Option Plan (ESOP).  

3. Clarification on powers & authority of officer with regards to interception/inspection of vehicle  

4. Introduce functionality in portal  

5. Facilitate real-time movement of data from Bill of Entry to form GSTR 2B 6. Clarification on eligibility of ITC/refund of CVD & SAD paid for the pre-GST transactions  

7. Request to reopen FORM TRAN-I on the GST portal for bonafide cases  

8. Reconsider Rule 96B of CGST Rules  

9. Clarification on applicability of GST under RCM  

10. Clarification on eligibility of ITC against IGST paid through TR-6 challan  

11. Clarification on determination of value for the deemed supplies made between related parties  

12. Clarification on GST applicability on distribution of samples to persons outside India. 

The government is swiftly addressing concerns raised by taxpayers through various notifications and circulars, according to statements made by the chairman of MVIRDC World Trade Centre Mumbai. The government is also offering crucial advice to improve the efficiency of GSTN facilities. 

The memorandum also highlighted the difficulties faced by the sector and exporters when it comes to the inspection and valuation of goods during transit as well as adherence to legislative requirements such Rule 96B of the Central Goods and Services Tax (CGST). The recovery of refund of unused input tax credits or integrated taxes paid on exports of goods where export revenues were not obtained is described in rule 96B.