Karnataka State Chartered Accountants Association submit a Memorandum Regarding Hardships Faced In Gst Filings to Hon. Revenue Secretary Shri. Hasmukh Adhia on 19th August 2017. The Karnataka State Chartered Accountants Association (R) (in short `KSCAA’) is an association of Chartered Accountants, registered under the Karnataka Societies Registration Act, in the year 1957. Text of the Memorandum is as follows :-

Karnataka State Chartered Accountants Association ®

CA T.N. Raghavendra, President

CA Chandrashekara Shetty, Secretary

Date: 19th August 2017

Shri. Hasmukh Adhiaji
Hon. Revenue Secretary
Ministry of Finance
New Delhi

Respected Sir,

Memorandum Regarding Hardships Faced In Gst Filings

The Karnataka State Chartered Accountants Association (R) (in short `KSCAA’) is an association of Chartered Accountants, registered under the Karnataka Societies Registration Act, in the year 1957. KSCAA is primarily formed for the welfare of Chartered Accountants and represents before various regulatory authorities to resolve the professional problems faced by chartered accountants. We at KSCAA have been serving keenly our fraternity and public by having discussions with them and taking their issues and populating them before right forums in a selfless manner over the past six decades.

At the outset, we congratulate you on the firm steps taken by your government in GST implementation and are highly appreciative of the political will displayed and also the speed of implementation of GST especially which requires a large scale implement of resources. As partners in nation building, we wholeheartedly welcome this and will endeavour our best to make this a big success and we pledge our unconditional support towards this initiative. There are many issues and hardships being faced by the GST assessees due to systems not being in place. The law being nascent, one the understanding itself requires quite an effort, having their GST infrastructure is another big task; assuming that the GST assessees match these things and have to populate in time, the GST website is also having downtime. These vagaries have left the assessees high and dry. Many assessees and professionals have requested us to represent on this matter.

The objective of submitting this memorandum is to appraise your goodselves the hardships and issues being faced by the various assessees and seek your support and solution to resolve the same.

Pressing Issues:

1. Scheduled downtime on e-filing website:

The GSTR 3B is required to be filed by 20th Aug for the July transactions. On a pan India basis people are uploading and paying taxes, which is expected to have issues relating to access traffic. As far as the present going is concerned, we find that the test run has been insufficient A gesture of proactiveness to extend the due date and quick communication to such effect is immediate pressing need of the hour and also, quick redressal and overhaul of the infrastructure so as to not have such issues recurring is highly helpful.

2. The timeline for filing Form GST TRAN-1 for claiming transitional input tax credits is 90 days from the appointed day i.e. 30th September 2017. However, recent notification No.23/2017 – Central Tax dated 17th August 2017 curtails this due date to 28th August 2017.

Rule 117 of the CGST Rules, 2017 entitles every registered person to avail credit of input tax under Section 140 within 90 days of the appointed day by submitting a declaration electronically in Form GST TRAN-1. However, the recent notification no. 23/2017 – Central Tax dated 17th August 2017 which specifies registered persons who wish to avail input tax credit in terms of Section 140 by filing Form GST TRAN-1, should complete the electronic filing of both GST TRAN-1 and GSTR-3B by 28th August 2017 to avail the transitional credit off-set, is contradictory to the provisions of Section 140 read with Rule 117 of the CGST Rules under which this notification is issued. It is causing significant distress to various stakeholders as the form is still not made available for e-filing. This is a classic situation of notification bypassing the legal mandate.

3. Clarity on claim of ITC flowing from GST TRANS-1.

There are situations where few assessees have already filed the GSTR- 3B immediately after the release of the said form in second week of August and before the issuance of the notification No.23/2017-Central Tax clarifying the filing of GST TRAN-1 & GSTR-3B. Further, few assessees who might have filed their returns without claiming ITC as GST TRAN-1 is yet to be released and in the light of the statutory mandate that ITC has to flow from GST TRANS-1 and due date for filing is 90 days from appointed date, claim of the assessee shall be made available to him in the month in which the GST TRANS-1 is filed thereby following the provisions of the statute in letter and spirit Since any of these interpretations cannot be faulted on the assessees, we request you clarify the correct position of the Law on ITC claim flowing from TRANS-1 especially when the form is still not yet released for filing.

4. Level playing field for the assessees vis-à-vis the compliances.

The issue being faced by the assessee is that the returns cannot be revised and they are required to provide all the information in a short timeline. Also, the input matching is not available yet as the GSTR-1 & 2 is not yet operational. This will have major matching issue. Hence, a request for allowing GST-3B revision would be helpful to match the data with GSTR 1 & 2 and avoiding undue hassles to the assessees at large. The resolution of matters offline with State/ Central jurisdiction be notified for the teething issues, which cannot be resolved online for initial few months, this would be highly appreciated.

10. Composition Schemes.

Some of the composition dealers under earlier regime while migrating to GST regime got migrated under regular scheme. Post migration, those assesses who wish to revert back to composition scheme are unable to exercise this option due to technical glitch in GSTN. In such cases, a clarification is required as to the requirement of filing GSTR-3B ‘Nil’ return by them or are they required to wait till the expiration of prescribed timeline of 30th September 2017 for exercising the option.

6. Surrender Cases.

Many assessees who are not falling within the ambit of GST due to their turnover below threshold for registration have been migrated due to legal mandate. In these cases, since they are not required to be under GST regime and wish to opt out, clarification on when the surrender form will be released for e-filing and clarity on whether they are required to file GSTR -3B ‘Nil’ Return.

7. Amendments.

Most of the assessees who wish to effect amendments to their registration are unable to do so due to technical glitch in GSTN. We earnestly request your goodselves to set right the matter as soon as possible as small and medium assessees are dependent on consulting fraternity.

8. Clarification through FAQs, Handbooks and GOI Twitter handle.

Most of the stakeholders are dependent on Sectoral FAQs, Handbooks and GOI Twitter for query resolution. We are amused to observe contradictory clarifications coming out GOI Twitter handle on the same issue. We request your goodselves to issue a clarification on the authenticity of such contents.

9. Payment through credit card and debit cards and without logging in/ usage of OTP.

For ease of operations we request for the payment option be enabled without OTP as many a times it is being paid by person on behalf of the entity as they may not be able to dedicate time and effort due to varieties of business reason and feasibility.

10. URD supplies quantification while filing of monthly return

It is practically difficult and compliance feasibility, and effort is highly required to practically arrive at the line item of expenditure. This makes it mandatory for monthly accounting for even the unorganised sector will be quite telling for them to operate properly under law. Naturally when the turnover of the vendors is below the threshold level, it would have been ideal to have their PAN quoted / address quoted instead of subjecting them for reverse charge. The machinery provision is draconian and daunting enough for the small-scale sector and against their very subsistence especially when this community is a merit in itself as India has sustained the depression due to their self- sufficiency, this very base seeming to be hit inadvertently due to such provision.

In a progressive approach and in the path of successful implement of GST law, we as the partners in nation building, have been requested by many assessees and practitioners to represent the issues being faced in the compliance machinery. In this endeavour we write this memorandum.

Hope to receive some clarification and support from your goodselves in easing the problems!!

Thanking you,

Yours sincerely,

For Karnataka State Chartered Accountants Association ®

CA. Raghavendra T.N.
CA. Chandrashekara Shetty
CA. Vijay Sagar Shenoy
Representation Committee

Download Memorandum Regarding Hardships Faced In GST Filings by KSCAA in PDF Format

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  1. Navneet Arora says:

    I filled up the Tran 1 form online to take old regime cenvat credit, but unable to file Digital signature DSC. researched online and had to download emsigner, update java, move to internet explorer, upgrade it and voila – it still does not work. After 3 days of trying from 7 Am till almost midnight everyday and trying the helpline number, I have given up. The GST challan is not associated with either credit from Tran 1 or a payment gateway. I am defaulting but can not help it. Oops I am not a CA either, a medium level Tour Operator, trying to learn the new GSTricks. Wish all good luck

  2. Somasekharan C says:

    After filing GSTR 3B, there is not any facility to take a printout of this return. If the facility is provided it will be more helpful for small and medium tax payers.


    There is another problem for the Taxpayers. In the process submitting the Form GSTR 3B online on GSTN Portal a manmade handicap is prevailing to cause hardship to the users of the portal, i.e., taxpayers. Actually, only after completely filing the GSTR 3B WITH DSC/EVC, the submitted matter must be locked as unchangeable/unalterable by the Taxpayer. The actual handicap being faced by the Taxpayers is due to that of wrong method created on the portal in connection with knowing the actual tax liability only after pressing the “SUBMIT” button. Instead of keeping the “SUBMIT” button it ought to be “CALCULATE TAX” button. In fact, the (calculation of) tax liability must be known to the Taxpayers before their final submission, so that the Taxpayers may make suitable corrections if they found any variations in tax liability, and then make the final submission of Return in Form GSTR 3B WITH DSC/EVC, by the Taxpayer for once & all.

  4. Mukesh Parmar says:

    Namaste : A good effort on highlighting various difficulties faced. There are many more which also needs to be addressed. I like to bring forth the following for consideration of Finance Ministry and GST Council.

    1. Reverse Charge Mechanism under section 9 (4) is very harsh and will create many many hurdles. Therefore a humble request to repel this section.

    2. The payment options are very complicated with 3 types of ledgers, which are time consuming. And so is the return form GSTR 1 and others. When we call it GOOD & SIMPLE TAX, it should put the dealer at ease of doing business and also easily comply with the requirement of the Act. This being the crux of ebacting GST, i suggest a simple format that was operational under Karnataka vat Act. Which takes care of Sales, Sales Return, Purchases and Purchase returns, with a small change that sales return be treated as sales and purchase returns also be treated as sales of customer and supplier. It is inclusive return which takes care of all aspects and reporting and payment options are too easy. This can be very easily adopted even by a laymen with basic computer knowledge. May i pray & request the Honorable Minister and council to look into this aspect.

    3. The GOOD & SIMPLE TAX to have minimum sections and Rules, forms and formats. They are in wholesale in GST. With due respect the council can look into this matter too. Make it simple Sir.

    4. Can we ponder over having only two schedules to the Act. Schedule 1 for exempted items and Schedule 2 for rest of the items tobe taxed at 16% GST ( 8% + 8%). The intra state tax transactions can charged as GST @ 18% in invoice and and interstate transactions be charged as IGST 18%. While making payment the challan can provide for SGST, CGST, IGST columns where the assesse can fill the GST tax collected under SGST & CGST (50% each) and IGST as IGST. The way bill be continued as it is for Tax Invoice Value above
    shall try and post more as n when the hurdles are faced under GST in coming time.

    I am sure many would have to contribute to these to simplify the whole process for ease of doing business and at the same time walk together with Government to comply Honestly.

    Thanking you in advance for your patience hearing and response.

    Warm regards.

  5. C A K C AGARWAL says:


  6. MNVIKRAM says:

    Need clarity on GST applicability / rate upon sale of old/used Scorpio car which is owned by our company/firm.

    Could not find clarity in the gst rules.

  7. Vikram says:

    I need Clarity on GST implication upon sale of company/firm owned used vehicle. In this case a scorpio car.

    There is no mention regarding this in the rules.

  8. S Balasubramanian says:

    Wholeheartedly appreciated. There is urgent need on the part of Government to make the entire system easy and user friendly. (Now they are Administration friendly.)

    There is also need to reduce the number of returns. With the knowledge base limited to qualified CAs and tax professionals, laymen should be made to feel comfortable and file the returns without hassles and without professional assistance. The Java utility provided by Income Tax Department is quite user friendly and progressively assisting the filer with data correction and correct feeds. Something similar needs to be done here too

  9. Vijay Kumar says:

    If the Chartered Accountants are facing difficulties, can the common trader file returns? I am also + 73, and can I work like a person of 25? Can an uneducated small trader or manufacturer take care of all aspects, rules etc. But rules are rules. This aspect should be taken care by those at the helm of affairs. Can a person in his simple language put the details of purchases, services, calculate the balance GST payable, Government officers file return on behalf of trader etc, send details to the trader and ask for balance GST or send refund cheque? Make life simple for people. Presently it is not.

  10. CA Sanjay Arora says:

    Good Effort
    But how much load CA Faternity will take to meet commitments of Filing ITR GST compliance IT scrutiny and Appeals besides Normal Professional Routine hassles and meetings
    Pray to almighty to help us

  11. KALPESH says:



  12. CA P. C. Kamath says:

    A commendable effort by KSCAA in making almost a live representation to GOI when the things are made difficult for compliers who want to be partners with GOI in making GST implementation a grand success. Thanks a lot KSCAA


    There is another problem,for the dealers who have not fill up their profile but all ready has created user id and pass word,when they tries to enter in the GST website his page opens but with a massege that “your access is denied please try latter” I do not know the reason of such denial when I have right to migrate till september2017
    please help

  14. Subhasis Banerjee says:

    Difficulty in registering tax payment in GSTN portal is also required to be captured.
    On August 10, 2017 I created challan in my GSTN portal, select e payment mode for payment of tax and make payment from HDFC bank through NEFT. Payment debited to my bank account but in my challan history it is showing payment failure. I enquire in bank, they confirm transfer of fund I enquire GSTN help desk,they admit their problem and assured me that my tax payment will be recognised in due course of time since fund is already debited to my bank account. One step forward they told me it would not affect filing of my 3B return which was not true as because without challan reference I could not file the return. Till today tax so debited in my bank account has not been reversed and status of payment failure is still displaying in GSTN portal.

  15. I propose provision similar to Income Tax Act 44AD where user below audit limit should be excluded from reverse charge mechanism and he should only submit GST details regarding his sales and purchases.

    In this case since it is assume that expenses are not maintained then any GST set off other than purchases should be disallowed and should be treated as consumed

  16. CA. Mukesh Saran says:

    Barring point #2 all other points raised are rightly pointing out hardships.
    As far as I know date of filing TRANS 1 has not been curtailed to 28th Aug 2017. In fact this date (28-08-17) has been fixed for those who wants to claim transitional credit against the liability of July 2017. Those who do not wish (for any reason) to set off his output liability of July 17 or already submitted/filed GSTR 3B can file TRANS 1 with in 90 days from AD.

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