VIJAYAWADA: Andhra Pradesh (AP) Chambers of Commerce and Industry Federation wrote to Union Finance Minister Nirmala Sitharaman, suggesting improvements to the Ease of Doing Business (EoDB) in GST and IT, on Wednesday.
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. However, due to delay in payments from the State governments or Public Sector Undertakings (PSUs), the business establishments are compelled to pay GST from their own funds whenever it is due, causing financial stress.”
Therefore, the AP Chambers requested the Union government to make GST payable only on receipt of payment when State governments or PSUs are involved. “Delayed payments on GST attract 18% interest. This was fixed several decades ago when the Prime Lending Rate (PLR) was around 13%. Now, the PLR is around 7%. We request the Union government to make this 12% per annum, instead of 18%, as bank deposit rates are only 6% and lending rates are at 9%,” the AP Chambers explained.