13 issues in GST which needs immediate redressal by Government

A Representation is made to GST official and bring to their attention issues related Late Fees levied for delayed filing of GST Return, Separate Returns, No Provision for Revised GST Return, single return for small scale businessmen and composition dealers, Due Date for GST return filing, GST Refund & Claims, grace period for authentication of return through EVC or Digital signature, Uploading the bill wise data, errors on the site while making payments,Data Security of businessman’s bill wise data along with HSN code uploaded on the portal, Rights to Local Nodal Officer to attend the grievances filed by the assesee,  Shared Responsibility for successful implementation of GST.

Date: 19/10/2018

To,
The Commissioner
GST Section
Yerwada Pune Division

Subject: Request Letter for Doing Important Amendments in GST Act.

Respected Sir,

At the outset, we congratulate you for implementing GST, the biggest tax reform and we are happy to be a part of this big revolution. We must note that the co-ordination between law implementing and law abiding is very essential and efforts from both the sides are equally important for successful running of tax system in the country.

GST has been implemented in India by the central government w.e.f. 01.07.2017. At the time of implementation it was promised that, it will be lenient with the tax payers till GST tax and the computer system gets streamlined. The government had already promised the same in its introductory commentary, but in the very first month the government levied late fees of Rs.100 per day on late filling of the returns and accordingly collected the late fees. But the government noticed that, there were many errors and technical issues and waived of penalty till Sept 2017. Further the government reduced the late fees to Rs.50 per day and Rs.20 per day for Nil return.

The government must be under the impression that, there are no technical issues anymore and everything is streamlined, because w.e.f. Oct 2017 the government has started collecting late fees.

You will agree to the fact that successful implementation of GST is dependent on a large extent, on the proper implementation of GST computer system, or GSTIN portal and its infrastructure. However, because it was implemented in a haste, the system collapsed many times during the first few months of implementation. This fact was confirmed by none other than, the finance secretary, Mr. Hasmukh Adhia in his speech celebrating the completion of one year of GST. Infosys also blamed that frequent changes in goal post failed the GSTIN system.

As this is a completely new and an extremely complex tax system, which largely depends on the GST portal and handling of huge data every month, it is very difficult for taxpayers and CAs and the tax consultants to complete all the necessary documentation within time and hence all the CAs, tax consultants and taxpayers are under tremendous pressure because of GST. We read in the news that some consultant and CA have died of heart attack or have committed suicide due to the stress. So it is absolutely necessary to make it simple.

In this connection please note that there are many points which need the attention and amendments in GST Act. You are requested to forward our request to the government on behalf of common public and taxpayers, as we know you are going to say that nothing is in our hands and GST Council will take the decision on this issue for better foundation of this GST Tax system. Please note the points which should be amended.

1) Late Fees:

Government should not charge late fees unless and until the online system is streamlined. There were many technical issues with the site, because of which assessee had to pay late fees. So you are requested to waive the late fees. The government itself agreed in its’ GST Council Meeting that there are many technical issues with the site and the site fails to function time and again. Because of that many assesses could not file their return within the time limit. Accordingly the government has extended the due date for GSTR1 to 31 st October 2018 and waived off the late fees for GSTR1. On the same grounds you are requested to waive the penalty for GSTR 3B as well, as it’s filing also suffers from the same technical issues. In the larger interest of public further late fees amount should be restricted to the tax payable. Rights should be given to Concern Nodal officer to waive the late fees if it is charged without the fault of assessee. There should not be any late fees for NIL Return. Further please do not charge penalty for GSTR 3B if payment is made in time.

2) Separate Return:

Please treat each return for different period separately. Some return may be pending due to any technical issue or any other issue. In such case, please allow to us to file the return for the next month. Currently if any return is pending because of any issue all returns for the next months get held up until that issue is sorted out. Subsequently these returns attracts penalty unnecessarily. So please treat each return separately. If a return for an earlier period is not filed, the next return should get filed. It should not be dependent on return for the earlier month.

3) Revised Return:

Currently there is no provision for the revised return. We are human beings and minor errors are bound to happen. So you are requested to allow us to file revised return. Government has made many revisions through notification and circulars, clarifications. Similarly a chance to rectify the mistake should also be given to the taxpayers.

4) Single Return:

The complex structure of various returns must be simplified. There should be a single return for small scale businessmen and composition dealers. The submission purchase data should not be compulsory for composite dealers.

5) Due Date:

As we have to comply various statutory norms such as TDs before 7^th, ESI & PF before 15^th, Advance Tax, Quarterly TDS Returns, Tax Audits, Income Tax returns etc, you are requested to keep the due date of GST return at the month end. It will reduce some burden on tax payer as well as consultants.

6) Other Points:

There are many more points which need attention and some revision. Some of these are ITC 04, RCM, E way Bill, etc. These should not be applicable for small scale dealers. There should be a turnover Limit for this. It is extremely time consuming and the businessman has to maintain huge additional records. This slows down the overall productivity of the small businesses to a great extent.

7) Refund & Claims:

There are many technical issues with the site, while submitting Tran 1 and Tran 2. Because of that some assessees could not get the credit of the same. He could not get the claimed refund. So you are requested to sort out the issue on priority basis or allow us to file the claim manually.

8) Grace Period:

Please allow us grace period for authentication of return through EVC or Digital signature. Many times assessee did not get an OTP and we could not file the return. So please allow us Grace period of 10 days for EVC. Please treat the return in time if it is uploaded in time. Further it takes up to 3 days to update the data in GSTR 1 if data is more. Because of that we are unable to submit the return in time. So please allow us grace period of 5 days for the same. As data could not updated in time it is attracting penalty without the fault of assesses.

9) Party wise data:

Uploading the bill wise data is time consuming and increases the workload of client as well as of consultant. Further we get only 10 days to upload the same. So you are requested to accept the party wise data for GSTR1 and not bill wise and extend this date till the next month end.

10) Payments:

Many a times there are some errors on the site while making payments, on GST site it is shown as the payment is initiated and our bank accounts also get debited by the same. In such a case return should be treated as filed in time as there is no fault from the assesee.

11) Data Security:

The businessman’s bill wise data along with HSN code is uploaded on the portal. Please ensure and assure us the data security for the same. Please assure us that our data will not get hacked by anyone and will not use by our competitor or there will not be any misuse of our data.

12) Rights to Local Nodal Officer:

Rights should be given to local nodal officer to attend the grievances filed by the assesee or take any decision regarding the same. Currently officer is saying nothing is in our hands. The taxpayer and the consultants have absolutely no idea whom to approach with the grievances.

13) Shared Responsibility:

As successful implementation of GST is the joint responsibility of the government, tax payers and Consultants. So the government should also he responsible for keeping GST site and portal error free. Only tax payers should not he punished for technical issues.

You are requested to kindly take it on record and do the needful at the earliest. Please forward our demands to concern authorities. We are expecting necessary changes and amendments in GST Act very soon. The GST should really be simple to achieve its prime motive.

Please note that we will protest for one day in front of Yerwada GST office if our demands not accepted by GST Council.

For Upendra S. Khollam & Co. Tax ConsultantsUpendra Shankar Khollam 09370260201 07620260201(WhatsApp) 09579871789 (WhatsApp) upendra.khollam@gmail.com upendra.shankar.khollam@icai.org

For Pramod Lohar & Co. Tax ConsultantsPramod B. Lohar 09623577874 09130004150 pramodlohar191@gmail.com

C/C

1) C M Office Mumbai
2) PMO Office New Delhi
3) Sanjay ( Bala) Bhegade ( Local MLA Maval )
4) Shrirang ( Appa ) Barane ( Local MP )
5) Girish Bapat ( Guardian Minister Pune )
6) Commissioner of GST ( Akurdi, & Pune )
7) Commissioner of GST ( Thane )
8) Commissioner of GST ( Mumbai )
9) Institute of Chartered Accountants of India ( Akurdi )
10) Institute of Chartered Accountants of India ( Bibavewadi )
11) Sales Tax Practitioner Association (Pune)
12) TV 9 Marathi News Channel

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