This Diwali celebrate with crackers of GST!

 CA Umesh Sharma

Arjuna (Fictional Character): Krishna many people celebrate Diwali by bursting firecrackers.  Many a times Law and cracker are co-related with one another. GST is in the air, after completion of the income tax audit. So how one can relate GST and firecrackers?

Krishna(Fictional Character): Arjuna, Diwali is the festival of joy and happiness. There is high regard for Dhanateras, Lakshmipujan, etc. we celebrate Diwali by bursting crackers. Similarly every year government bursts some new types of crackers. This year also government have busted firecrackers by issuing various notifications, circulars and press releases in GST before Diwali.

Arjuna: Krishna, Is there ‘Bhuichakra’  i.,e Ground Spinner available in Government stall?

Krishna: Arjuna, ‘Bhuichakra’ means ‘Returns’. As the ‘Bhuichakra’ i.,e ground spinner goes round and round at one place, similar is the situation of the returns. Every taxpayer has to file 2 returns per month i.e 24 returns for a year. So, in ‘Chakkar’ of returns, the taxpayers have to come on ‘Bhui’ that is Ground’.

Arjuna: Krishna, are there ‘Crackers lad’ (Garland Crackers) available in the stall?

Krishna: Arjuna, Yes, Garland Crackers are also available. In case of Garland Crackers one firecracker is connected with another and if one cracker burst, then others also burst. Similarly, there is concept of matching-mismatching in the GST. Our sales and other persons’ purchases are connected with each other. The details furnished in the Form GSTR- 1 by the supplier, will be reflected in the Form GSTR – 2A of the receiver. But if those details are not matching, then Garland crackers will burst in Form GSTR – 2 ,but as of now GSTR-2 is not available God knows what will happen.

Arjuna: Krishna, which is the ‘double Bar’ (Twine Bomb) in GST?

Krishna:  Arjuna, the previous financial year was the year of GST as well as VAT.As VAT law was applicable for the period April 2017-June 2017 and GST for the period July 2017- March 2018. Therefore this time GST and VAT Audit bombs would burst together on the taxpayers but above all this would be a ‘Double bar Bomb’ for the Tax professionals.

Arjuna: Krishna, which is the ‘Phuska Phataka’ (non-bursting cracker) in GST?

Krishna:  In GST we can call annual return  as ‘Phuska Phataka’  i.e, Soundless Crakers.., as taxpayers have already made rectification if any in relation to outward supply, also matching mismatching of GSTR 2A with books of accounts has been done. The annual return would be auto populated, therefore how these amendments made would be reflected in annual returns and what about the mistakes unresolved, this question would be solved only after annual return is made available.

Arjuna: Krishna, what lesson the taxpayer should take from this?

Krishna: Arjuna, Diwali is the festival of lights. Everyone should celebrate the festival joyfully. If each and every Indian taxpayer follows the law, then the whole country will become enlightened. It means if laws are compiled then ‘Diwali’, otherwise ‘Diwale’ (Bankruptcy).

“Happy Diwali!”