GST has made the process of doing business complicated Comment

• GST implementation has brought in a uniform tax structure by replacing multiple indirect taxes like excise duty, service tax, and VAT. This has simplified tax compliance to a certain extent.
• However, understanding and adhering to the complex GST regulations can be challenging for businesses, especially for small and medium enterprises (SMEs) with limited resources for dedicated GST teams.
• Businesses now need to maintain meticulous records of their transactions to ensure accurate tax filing and documentation. This adds to the administrative burden and increases the chances of errors and penalties for non-compliance.
• GST requires businesses to classify goods and services into different tax slabs, which can be confusing and time-consuming. Determining the correct tax rate for a particular product or service may require professional advice or software assistance.
• Another issue with GST is the implementation of various notifications and amendments. Changes in tax rates, exemptions, and rules are frequent, making it difficult for businesses to keep up with the updates and ensure compliance.
• The GST network (GSTN), the technology backbone of the GST system, has also faced technical glitches and server downtimes, causing inconvenience to businesses during tax filing or return submission.
• Additionally, small businesses that were previously exempt from VAT or service tax regulations now come under the GST ambit. This increases their compliance burden and may affect their overall profitability.
• Lastly, the interplay of GST with other business processes such as inventory management, pricing strategies, and supply chain management requires businesses to adapt and restructure their operations, leading to additional costs and complexity.

Overall, while GST aims to simplify the tax regime, businesses often face challenges due to its complexities, administrative burden, and the need for continuous adaptation to changing regulations.