AP Chambers urges FM to revisit GST

Vijayawada: Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) on Wednesday asked Union Finance Minister Nirmala Sitharaman to have a relook at improving the Ease of Doing Business (EoDB) in GST and Income Tax.

In its representation, AP Chambers mentioned “the GST payments are now payable on 20th of the following month for all invoices raised in the current month. But due to delayed payments from the State Governments or PSUs, the business establishments are compelled to pay GST amounts from their own funds whenever it is due. This has been causing a lot of financial stress to MSMEs. Hence, we request the Union Government to make GST payable only on receipt of payment especially when State Governments or Central PSUs are involved.”

AP Chambers said delayed payments on GST attracts 18 per cent interest, this was fixed several decades ago when the Prime Lending Rate (PLR) was around 13 per cent. Now, the PLR is around 7 per cent. “We request the Union Government to make this 12 per cent per annum, instead of 18 per cent, as bank deposit rates are only 6 per cent and lending rates are at 9 per cent. A rate of 12 per cent appears reasonable in these tough economic times,” the trade body contended.