Doctrine of Estoppel
The Government has committed mistake in setting up improper system which resulted the trade and industry, suffer severe financial crises, loss of business, stress and strain. If the trade and industry commits small error the Government is punishing with interest, penal action and or prosecution. It is not fare on the part of the GST administrators. The Government is adopting ‘Doctrine of Estoppel’ and making the trade and industries suffer.
The Act shall be ‘dealer friendly’ and shall give free access to feed the data, filing of returns, remittances, rectifications etc.,
On several requests and representations, the GST Administration is allowing for the rectification of specific form. For example April month return shall be filed on or before 20th May. Some of the registered dealers failed to file the return on time due to various factors including system error. In such an event, the Government is extending filing till 30th June. Interestingly the system will start working only from 28th June and not before. The system shall be freed and registered dealers shall have easy access to file returns, rectify the mistakes if any committed without any restrictions. However late fee, penalty are collected.
If GST system is not allowing for small rectification(s) it is nothing but creating a threat and increasing of litigation.
Further, the GST portal has option of helpline. It never works. If any registered dealer explaining the mistake / error took place while filing the return i.e. payment to SGST or CGST wrongly posted in IGST and seek for help. The system replies ‘we have registered the complaint and get back to you soon’ but it never replies in turn there will be a notice for the payment of SGST or CGST and never speaks for IGST payment. Having remitted SGST and CGST if the dealer claims for refund of IGST, it says that there are no invoices found.
One Nation One GST tax
As for as ‘One Nation One GST Tax’ has failed abinitio. There are 5 rate of taxes, (5,12,18,28,3). We understand that ours is a highest GST rate when comparing to other countries. Petroleum products, power, and real estate are still outside the purview of GST. GST is still facing “mosaic Down syndrome” period and though it has entered its third financial year on April 1st. We are trying to throw light on certain issues that currently facing by the trade and industry.
Since 28% of GST rate on some products like plywood, automobile parts, and electronic items forced many dealers to be a unregistered dealers (However presently the rate tax has reduced to 18%).
Maximum Retail Price
As for as MRP on the products are concerned, on Certain goods like, handlooms, sari makers, show makers, collars since most of the small dealers are illiterates and it is very difficult for them to understand what is MRP ? and how it works ?. Most of the small dealers are confused and doing business and stay as un-registered.
The compulsion for GST registration shall be lifted for small businesses who have a small turnover and need not pay GST. But the buyers demand bills / invoices from those sellers who are legally exempted from GST. Without proof of certificate of GST exemption, small dealers finding very difficult to get sale orders.
Input Tax Credit
The condition prevailed in GST Act and Rules that the input tax credit will be allowed only if the seller remit the tax. It is great joke in GST scenario. Business people are worrying in buying and selling their products in the most competitive world. There are several departments in which the work of purchases and sales of specific goods. There are targets fixed by the companies on their employees. It is continuous process. How buyer can step into the shoes of seller. It is practically not possible. Is there any country having this sort of provision. It is difficult to understand the Government logic behind it. This compulsion has to be removed for better compliance of GST.