A recent report by the Parliamentary Public Accounts Committee (PAC) has highlighted challenges faced by Micro, Small, and Medium Enterprises (MSMEs) and exporters under the Goods and Services Tax (GST)

 

Key Recommendations:

Simplified Compliance Framework: The PAC recommends establishing a streamlined compliance system tailored for smaller businesses. This includes automating return filing and refund processing, reducing the frequency of return submissions, and creating a more straightforward online reporting process.

Fast-Track Refund Processing: To address cash flow challenges, the committee emphasizes the need for a dedicated fast-track system for exporters' refunds. This system would prioritize input tax credit (ITC) claims related to exports, ensuring they are processed within specified timeframes.

Addressing Existing Challenges: The report also points out that current mechanisms for return filing are inadequate, leading to prolonged refund waiting periods. The PAC calls for a more efficient and transparent refund system with clear processing timelines and regular updates to taxpayers on their refund statuses.

These recommendations aim to alleviate the compliance burden on MSMEs and exporters, fostering a more business-friendly environment under the GST framework.​