New Delhi, Aug 12: Congress MP Gaurav Gogoi has urged Union Finance Minister Nirmala Sitharaman to address what he called a growing compliance burden on small businesses under the Goods and Services Tax (GST) regime, saying the main problem is “not taxation itself but the complexity of compliance.” In a letter dated Wednesday, Gogoi said his interactions with traders, entrepreneurs, manufacturers and local business communities across the Jorhat constituency revealed persistent difficulties in navigating GST procedures.
Gogoi warned that frequent changes to GST rules and procedures leave small traders struggling to stay updated, increasing their reliance on tax professionals and raising compliance costs. “Frequent amendments to GST rules and procedures make it difficult for small traders to remain updated, resulting in increased dependence on tax professionals and higher compliance costs,” the letter read.
He said the issue is especially acute for small businesses in rural and semi-urban areas, which often lack resources and access to timely information. Gogoi also highlighted the continued pendency of notices dating back to the early years of GST implementation, noting that genuine taxpayers who made inadvertent procedural errors still face uncertainty and financial strain. “A simplified and time-bound mechanism for resolving such legacy issues would greatly benefit small businesses and improve confidence in the tax administration,” he wrote.
The MP called for greater rationalisation of GST rates where multiple slabs and classification disputes add to compliance burdens. “A simplified rate structure would reduce ambiguity and facilitate easier compliance for businesses,” Gogoi said, arguing that clearer rates would cut disputes and administrative load.
Another major concern in the letter was denial or blockage of Input Tax Credit (ITC) when suppliers default, even if the purchaser holds valid tax invoices and proof of payment. (Input Tax Credit allows businesses to offset tax paid on purchases against their tax liability.) Gogoi urged protection for bona fide purchasers and that enforcement and recovery efforts target the actual defaulters.
He also requested GST guidance, educational material and digital portal support in Assamese and other regional languages, noting that “small traders often rely on intermediaries for routine compliance because official information and educational material are not readily available in their native language.”
Gogoi asked the Finance Ministry to consolidate GST amendments into fewer, well-publicised implementation cycles, establish district-level GST Facilitation Centres with trade bodies and professionals to help with registration, returns and grievances, and introduce a transparent, time-bound process for resolving legacy notices. He argued these measures would reduce compliance burden, strengthen voluntary tax compliance, promote formalisation of the economy and build greater trust between taxpayers and the tax administration.
Original Source: https://assamtribune.com/assam/gaurav-gogoi-flags-gst-compliance-hurdles-for-small-businesses-writes-to-fm-1615596
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Publish Date: 2026-08-13 14:31:00
