New Delhi, Feb 7 (TIWN) The consulting and services sector has urged the Centre to re-look at the Goods and Services Tax (GST) collection regime.

"At present, the service sector and consultants pay their taxes as conscientious professionals and firms and feel utterly frustrated as GST has to be deposited on accrual and due basis. The GST have to be deposited within 30 days of raising of Invoice and not on receipt of dues from the customer/client, "said K.K. Kapila, former president Consulting Engineers Association of India (CEAI) and past co-chair FICCI Infra committee.

Consulting engineering companies are engaged in the service sector and totally dependent for survival on timely receipt of dues from the clients.

He said that banks are reluctant to advance finance to professionals, and in any case are averse to funding payment/deposit of GST and Income Tax.

"Delay in receipt of dues from clients adversely affects these organisations' financial situation leading to delays in deposit of GST. Any delay in deposit of GST leads to threats of cancellation of GST Registration and/or Prosecution, etc. This is despite the fact that the service sector pays interest on delayed deposit of GST in spite of its tight Liquidity problem."