CA Satish Sarda
At every nook and corner of India GST has become the most hot topic for discussion. And the key issues in the discussion are : Will it come from 1st July? Will the things become costly or cheaper ? What about stock on 30th June ? Should I keep stock or sell out ? What about Input Tax Credit as on 30th June ? Can I get credit of GST paid in one state in another state ? What is the rate applicable on my products / services ? What infrastructure setup is required for compliance with GST ? Do I have to take registration under GST ? What is this E-way Bill ? What if some states do not pass the GST bill ? When will registration procedure for new registration will start ? etc.etc..!!! to put simply Confusions Galore !!!Even Twitter handle specially done for GST (@askGST_GoI) gives wrong, confusing answers to some of the questions put before it.
Why these question when we are already complying with so many indirect taxes such as Excise, Service Tax ,VAT etc . ? The reason being GST is the Mix-veg , it has taken different vegetables ( specially the non tastier one ) from all types of taxes , even from Income tax also. Secondly provisions are such complicated that even legal eagles are having different opinions , then you can understand the position of common man.
This is the tax reform everyone is waiting for. Government is also doing its best to roll out the biggest indirect tax reform. It is taking up huge awareness campaigns to educate the masses. But it is going to take time and it has to . GST is not just any other tax which can just be imposed and implemented. It is too big, too vast , too complicated to be implemented in a hurry. Its going to be a very healthy Mix-veg dish lest it is served well cooked . Half cooked GST will be a disastrous for the Government, Indian economy and taxpayers.
Why I anticipate that GST can not be cooked fully by 30th June,2017 ? The reason are following :
If government really wants successful implementation of GST it should ensure following before declaring the rollout date :
From various sources it has been informed that Government is also thinking of Changing the financial year from April – March to Calendar year. This is also a welcome move. But roll out of GST in July and again changing of financial year from January will entail huge administrative burden on taxpayers. Change in financial year will have many complication in accounting, taxation provisions etc . Tax payers will not be able to handle two huge challenges in a span of 6 months. So it will be better if both the big and welcome reforms are rolled out from 1st January 2018. All the stakeholders will get sufficient time to mould themselves in the new environment. We are sure government can take appropriate care of constitutional aspect.
Tax payers who are still to come out of the demonetisation shock , will not be able to handle the two more shocks in quick succession. Let the Government follow its own slogan “Sab ka Saath ,Sab Ka Vikas “..!!!
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018