Transporters claim GST made more complicated

Ludhiana: Displeased with the changed GST regulations applicable from Monday, the city transporters claim that the new clauses have make the good and services tax more complicated when they expect the central government to make it simpler by introducing a lumpsum tax.
Chartered accountant Vikas Goyal said: “The reverse charge mechanism (RCM) on freight is now applicable from even a single rupee, as the exemption of Rs 750 has been abolished from today and, therefore, all consignments for freight worth below Rs 750 and up to Rs 1,500 for single carriage will also be taxable on a par with the freight of higher volume.”
The government now comes out with an optional scheme of 5% tax without input tax credit (ITC) for the transporters. The Good carriers can now either pay GST at 5% without claiming ITC or 12% GST and claim the ITC. But for this, they must pick the option of payment under forward charge at the beginning of the financial year. Goyal said: “If the goods transport agency exercises the option, it needs to give a declaration on every tax invoice and consignment note.”
Another important update for the transporters is that the renting of goods carriage with the operator, where the cost of fuel is included in consideration charged from the service recipient, shall be taxable at a rate of 12%. Renting of goods carriage with operator where cost of fuel is not included in the consideration is taxable at 18%.
However, the services given on hire to a goods transport agency and any means of transporting the goods are exempted.
Focal Point transporter Satnam Singh said: “From today onwards, multiple changes concerning the transport business have come into the GST regulations. Whether it is sales tax or VAT (value-added tax), the transporters have always obeyed the rules and regulations but so many changes in gthe GST every now and then are making the business more complex for the transporters, especially for those who have small fleets. It would be a win-win situaiton for the government as well as the transporters and their clients if a lumpsum tax scheme is launched to exempt us from making tax calculations under so many complex procedures.”
Another transporter Didar Singh said: “With so many GST-related changes coming into effect from today for the transporters, it seems we will have to hire more tax professionals, because for every single transaction, we will first have to consult the experts and then proceed with the business so as not to violate any rule by mistake. It is our request to the government not to make the GST more complex by adding new provisions so often. Instead, we advise it to make the tax system simpler, so that the businessmen comply with it easily.”