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27th GST Council meeting Decision can be divided into 3 Category for analysing purpose,

1. Return Simplification.

2. Transition.

3. Revenue Control.

Let analysis category one and Two

Return Simplification

a. GST Council decided make one Single return for month.

b. Uploading of invoices any time basis, it’s condition that to avail the input tax credit-ITC the seller/Supplier Should upload the invoice. (It required amendment of Section 16 of CGST/SGST act)

c. Uploaded Invoices should be in HSN lever. (Four Digits or More)

d. Based on uploaded invoices (only for B2B transactions) System will compute the tax Liability automatically

e. In case  of ITC extent of invoice upload will available

f. Seller Defaulted for making payment, this option for department to block the credit to that extent after the serving notice digitally ony exceptional situations like deal missing, Closure of business ect.

g. Return content will to reduced like Document issued.

Author View: 

If “A ltd” brought Material from “B Enterprises” if Mr. B (Proprietor of B Enterprises)  defulty can happened by Mr.B

a. Non payment of Tax

b.Tax paid but not upload the Invoices with inCorrect taxable value and tax rate

c. Tax paid and invoice also uploaded but wrong GSTIN

Govt should come up with clarify in  situations B & C to protect the prominent tax payer, and action to be taken by the receiver the above situations. Reverse of ITC due non-payment of tax by the Vendor, it will create the conflict between department and taxpayer in digital environment. govt Should provide chanase  being Heard by taxpayer before reversing ITC.

Other problem for taxpayers

1. Invoice uploaded by vendor but is not belong to Company then it will problem to match the ITC as per books of Accounts and GST returns.

2. Invoice uploaded by vendor but goods not received or invoice is not come to accounts department. in this case  it’s very default to Judge correctness  of value in the uploaded data

3. After the completing returns and making payment by taxpayer some of vendor uploaded  removed or reduce the value of sales invoices. (If Software provide the options to remove and edit the data)

4. ITC available (after the transitional period)  only to extent of updates of vendor, if 20th is last day vendor will keep Updating there sales invoice till might of 20th then it’s customer want to file return with 10th only, In this case vendor will lose the ITC. Govt should protect the small business from above sitions.

5. ITC availment logic to forces taxpayers to file returns after due  date or at end of deadline to avail maximum of ITC credit.

6. It will also increases the “Load on software” (GST portal)  it might be get failed at last day, Software should take proper precautions measures to take take final minutes load, Because of software failed penal provisions should not imposed on proment taxpayer.

7. No decision has  been taken on Refund of Export (with paymen of IGST) Suggetable is that data of export should pool from the “ICEGATE website”  (  gives Very perfect to create the tax liability on export of taxpayer  and for Refund purpose. facility should be provided to  submit the FRC or BRC in portal itsself (As recommended by “The Institute of Cost Accountants of India” more informations floow the click link

8. No decision has been taken on IGST credit of Imports Suggetable is that data of import’s should pool from the “ICEGATE website” ( its gives Very perfect, data based on this importor can availe the credit of import IGST (Recommended by “The Institute of Cost Accountants of India” more informations floow the click link

9. If any vendor’s of taxpayer gone to appear on HSN calcifications or tax rate or about validity of law or any other reason, It might be take several  years for come with the judgement. till time taxpayer has to pay the difference of ITC or Full ITC from there packet, it will affect working capital company.

10. ITC availment facility will affect working capital of company, it’s very default for small enterprises to to come out from provisional credit.

 11. IN CST (Central Sales tax) there is concept of “Form C” Sales will have to collect the C form from purchaser its very tedious work with huge  manual interventions. The ITC logic is going work in same logic to get it updates the Supplier sales invoices to take a ITC

12. It will increase cost to MSME’s on training of employees of Changes of GST Systems and GST Law,

13. If law provides the options to make quarterly returns, then If  taxpayer brought martial from Small trader then taxpayer will not able to take credit for quarterly returns completes, it will conflict between small traders and big traders.

Suggetbale to companies:

Receiver should take confirmations while cerling payment to vendor, that invoices  is uploaded to the GST portal and made the payment. Company’s Should also make sure that all the sales invoices invoices is uploaded to GST portal correctly.


Transitions means: Converting  from the Current system to New system

Transition is in III Stage

Stage I   :- GSTR-2 and GSTR-3B will be remain Suspended to IT is Ready

Stage II :- ITC can be Claimed by the taxpayer on provisional basis for 6 months only)

Stage III:- ITC is available to the extent on which counter party is updated

Author view:- 

Stage I   :- GSTR-2 and GSTR-3B will be remain Suspended to IT is Ready 

In this stage current Situations GSTR-3B and GSTR-1, Will be continued till software is ready

Stage II :- ITC can be Claimed by the taxpayer on provisional basis for 6 months only)

In this stage (Only for 6 months) taxpayer can can avail the provisional ITC , system will show the gap between ITC taken in GSTR-3B(now) and Counterparty updates. after the 6 months provisional credit facility will withdrawn after the ITC availed only to extent of counterparty updates.

Author view:-

Form  provisional credit from  July-2017 to till end of stage II (More the 1 year) should be cleared with in 6 months it’s very default big companies to clear the provisional credit. if Company fails clears provisional credit it’s paid the cash or in ITC.

Suggetable for Big companies that to clear the provisional ITC with help of Any ASP(GST Applications Suvidha provider)  service provider and keep track of counterparty updates to avail the  ITC at maximum extent.

Stage III:- ITC is available to the extent on which counter party is updated

Kindly refer”Other problem for taxpayers” to understand the situations after the implementations of stage III


I request the  Govt of India, Ministry Finances and GST Council to come up with protection policy to protect the domestic companies, MSME Enterprises from ITC logic.

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  1. Dinesh Kumar says:

    To simplify the GST return, government should compulsory to file the GSTR-3B monthly basis on permanently for every dealer without any turnover boundary. GSTR-1 continue for dealer having turnover more then 1.5 crore. GSTR-2 and GSTR-3 should be filled on quarterly basis for every dealer. So that quarter end, we can availed the ITC from every dealer

  2. krishna chandra agarwal says:

    it appear that decision has been taken to influence the public for winning the election. , without thinking the basic concept of G ST, Practical problem had been totally ignored.

  3. KAPIL BAFNA says:

    input credit should be based on invoice itself.if vendor not uploaded invoice or non payment of tax till end of assessment year , in that case authroity should reverse input tax at the time on Assessment and interest charged there on. And in case if buyer wrongly claimed input credit then in that case penal interest should be there.

  4. CA Hiten V Nagda says:

    In my personal opinion, the govt. need to give time to file return within period of 25 days as under:

    1) The supplier need to file details of supply within a period of 10 days with correct GST Reg.
    2) Then the govt. will process the return within a period of 5 days. and generate of ITC available to respective dealer just like TDS Credit in Form 26AS.
    3) Then respective dealer will check and avail the credit based on this with in a period of 5 Days.
    4) Based on details field for outward supply in first 10 days and credit available in its GST no. can only be claimed.
    5) Then pay the deferential liability based on auto generated data with is period of 5 days.

    Same procedure need to follow for entire year.

    Finally for the entire year with in a period of 3 months. Say By end of June 19 For FY 2018-19.
    Month on Month reconciliation need to file and work out final liability and payout the liability or carried forward credit for next period.

    Afterwards there is no correction grated.

    Most important invoice to invoice details is not possible only date wise transaction is possible because each dealer following different style of invoice series. Some where the said series followed at group level.

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June 2024