Daijiworld Media Network – Panaji

Panaji, Jun 2: The Goa Chamber of Commerce and Industry (GCCI) has urged the State government to recommend rationalisation of Goods and Services Tax (GST) slabs to the Union government, aiming to ease compliance burdens and remove cascading tax effects.

In a memorandum submitted to Chief Minister Pramod Sawant, GCCI President Shrinivas Dempo outlined a series of proposals ahead of the upcoming GST Council meeting. Among the key recommendations is a uniform 12% GST rate on all hotel accommodations and an option for standalone restaurants to adopt the same rate with input tax credit.

The Chamber also pushed for simplification of GST structures, correction of inverted duty frameworks, and input tax credit on construction services for hotels, home-stays, and warehouses.

“Due to the significant effect that the rationalisation may have on the industry, GCCI recommends a phased roadmap allowing businesses time to adapt,” the memorandum stated.

GCCI further proposed that businesses be allowed to revise GST returns to correct genuine errors and avoid disputes. It also sought a refund mechanism for GST paid on capital goods used for zero-rated exports, and a redesign of GSTR-9 and 9C forms to ease compliance.

Other suggestions included clarifying GST implications for joint development agreements, long-term leases, unsold inventory, and procurement thresholds.

Appreciating the government’s efforts in implementing GST successfully over the past seven years, GCCI said the current revenue buoyancy and system maturity make this an ideal time for bold, industry-friendly reforms. The Chamber also expressed its readiness to assist the government in refining and executing these proposals.