Arjuna (Fictional Character): Krishna, On the occasion of Diwali everyone purchase different types of crackers. Now a days, so much discussion is being made on crackers. What type of crackers are there this Diwali in the Firecracker Tax stall?
Krishna (Fictional Character): Arjuna, Diwali is the festival of joy and happiness. There is very much importance to the adoration of Dhanateras, Lakshmipujan, etc. Similarly, we celebrate Diwali by bursting crackers (Law). Every year government burst some new types of crackers. This year, new and huge atom bomb have already been busted on the taxpayers before the Diwali some of them are treat to watch while some are pain.
Arjuna: Krishna, which is the ‘Sutali Bomb’ in GST ?
Krishna: Arjuna, ‘Sutali Bomb’ from Government is ‘Restriction to claim ITC’. The restriction to claim Maximum Input tax credit of upto 120% of the eligible credit available in GSTR-2A is the Sutali Bomb, as its going to have a loud impact on Taxpayers. Every taxpayer should keep this provision in mind and comply the same. Otherwise the ‘Sutali Bomb’ of the Government would burst on the taxpayers.
Arjuna: Krishna, in the crackers stall are there any ‘fancy crackers’ available ?
Krishna: Arjuna, Fancy crackers are very bright, they do not make sound. They are pleasant to view. This Diwali this fancy cracker is Reduction of the corporate tax rate to 22%. This was a New welcomed cracker in the Cracker Stall.
Arjuna: Krishna, Is there any ‘Butterfly’ cracker available in the GST Crackers stall?
Krishna: Arjuna, ‘Butterfly’ cracker is one where one doesn’t know after igniting the cracker in which direction it would go. E-assessment scheme for faceless scrutiny of Income tax returns is one such ‘Butterfly’ where one would not come to know which officer is doing scrutiny.
Arjuna: Krishna, Is there any ‘Lavangi Fataaka’ (Small Crackers) available in stall?
Krishna: Arjuna, ‘Lavangi Fataaka’ is given to kids. In case of GST, ‘Lavangi Fataaka’ is making filing of FORM GSTR-9 optional for those taxpayers who have aggregate turnover up to Rs. 2 crores for the said tax periods.
Arjuna: Krishna, there may be variety of crackers in the Crackers Stall of Government. But which is the New ‘Rocket’ in it?
Krishna: Arjuna, New ‘Rocket’ this Diwali is Slashing of Corporate tax rate to 15% from current 25% for newly incorporated manufacturing companies (subject to fulfillment of some conditions). This amendment is hopeful to Boost the economy with the speed of rocket.
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.
Arjuna: Krishna, Is there ‘Bhuichakra’ available in stall?
Krishna: Arjuna, ‘Bhuichakra’ means ‘Returns’. There is no concept of revised returns under GST. Due to this the taxpayers are going round and round reconciling the books and returns, finding out the differences between returns filed and books , filing the monthly returns and also getting ready to file GST Annual returns GSTR-9 and GSTR-9C as the due date is fast approaching i.e 30Th November 2019.
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 complied then ‘Diwali’, otherwise ‘Diwale’ (Bankruptcy).