Open Letter to the Honourable Prime Minster of India
My Experience with GSTN:
I am a small-time professional chartered accountant in field of Taxation practicing since 21 years. Have seen massive transformation of manual to fully automated system of filing the returns be it be Income Tax(CPC), Be it be TDS(TRACES), Be it be VAT (MAHAVAT), be it be Service Tax(ACES), be it ROC Filing (MCA) etc.
All these systems took off gradually and day by day matured and were made user friendly day by day. E.g. Initially TDS System Traces was rigid about payment of the taxes and does not allow adjustment intra Codes, between the years etc. but as the administrators realised that When the tax paid belongs to the deductor why he shouldn’t be allowed to adjust as per his wishes, and subsequently the system was made more user friendly and rigidity was done away.
When the GST was implemented with big bang we thought Government have huge experience and best expertise (as claimed) of implementing such automated system, and GSTN will be best of system and a illustrative model (So that US Govt will inherit from us). The life of taxpayer will be more easier as far as filing is concerned (as termed by our Hon PM Goods & Simple Tax.) .The GSTN system was supposed to be front office of tax administration eliminating all chances of red tapisim, and all sort of corruption. Also, I heard that GSTN System is being developed and maintained by one of most reputed Software company of India.
But after passage of almost two months after launch of GST, it can be concluded that GSTN is massive failure and worst ever system implemented by supposed to be best government (as claimed).
With very little IT knowledge I can prove that system has all kinds of shortcoming and seems that there is no co-ordination between administrators and system developers. The Developers are not aware of the coded GST law. Just to quote a few Shortcomings:
- Being a new user there is every chance of error and omission, but the system is made so rigid with no room for revision or modification. Why not such facility provided to the users, when automated system can keep the trail of every addition and modification done by the user.
- The law allows and have provision to opt-out of Composition scheme by filing form CMP-04 ,if the conditions for opting composition u/s 10 of CGST Act does not fulfilled or breached. The GSTN does have such option till date. Needless to point out that option to opt for composition was provided very lately, by that time taxpayer had made lot of blunders by issuing Tax invoices. Also GSTN network has no facility of verifying dealer composition status by third party which can lead to huge evasion of taxes.
- The Enrolment application (migration / New registration) has provided option (compulsion for few Category) to submit the application online with Valid DSC but most of user system was found incompatible with signer software used by GSTN. Users have wasted lakhs of hours in struggling to make their system compatible for signing on GSTN. (Thanks to Chinse UC-browser which allowed some system to use GSTN signer utility.)
- The Enrolment process require Submission of Supporting Documents. The system displays 1 MB sizing requirement which is reduced down to 100 KB when uploaded. If GSTN feels that documents can be uploaded with all clarity with size of 100 Kb , the users earnestly request them to provide such utility.
- Existing Taxpayer which are not liable for registration under GST was legally entitled to cancel their registration. But again, system though allows to cancel but never accepts cancellation and those registration continue to be active making them liable for all sorts of compliances under GST Law.
- The GSTN system though an artificial brain which does not require any shutdown except in case of technical glitches or maintenance for a short period. But GSTN use to sleeps whole night, even if programmed to wake up to @ 6.00 Am, sometime sleeps up to 10.00 Am., Sometimes sleeps for days together. During the Day, the system is very busy to respond the users. As a results lakhs of skilled man hours were lost.
- The very basic concept of GST was seamless flow of credit and with that in mind Transition credit was to be allowed to the taxpayers by way of online return Trans1, Trans2 & Trans3. The return was to be submitted within 60 days , which was extended to 90 days after request made by various forum. But what happened facility to upload Trans1 was provided after 50 days that too when the administration was reminded by the Taxpayer that we need to adjust our credit of opening stock carried forward in GST regime. Shame on administration that Trans1 return was made online without any bulk filing utility knowing that thousands of entries has to be punched by the users. With a very little knowledge a small-time professional like me can design the Bulk filling utility. than how such a reputed developer cannot make it available till today.
- The GSTN System supposed to be very intelligent, flexible should have adjusted the credits laying in cash ledger & credit ledger as per law. But contrary, the system was made rigid again with no scope of adjustment. The payment should have been allowed to be made on consolidated basis to be adjusted by taxpayer to various taxes head viz SGST; UTGST; CGST; IGST; CESS; FEES; INTREST;PENALTY ( 8 under forward charge & 2 under Reverse Charge or may be more than that). Many Taxpayer have lost valuable working capital due to this system. Only a big corporate like ACC Limited managed to bring to notice of MOS Finance such inconsistency in system. GSTN need to learn and inherit existing system from TRACES which seamlessly allows adjustment of Tax paid in Cash.
- The GSTN supposed to provide online application(RFD-11) for Export without payment of duty or against bond, but no such facility provided and exports were left on mercy of corrupt official for availing the facility without payment of the duty. In some case even after one month of time lag the Letter of undertaking was not accepted by the official. Why not systems were designed well in advance before the GST implementation to provide facility to exports to apply online for getting approvals without payment of duty.
- Technical Glitches like System errors; system failures; System not responding; down for maintenance; does not have enough bandwidth to support the users were daily and routine slogans on site.
- No effective system is in place for timely redressal of problems faced by the users. The helpdesk is inexperienced and have no solutions for most of the issued raised by the users. The Twitter handle and email respond rarely and that too incorrectly.
The above shortcomings are only illustrative and many more can be list down, but sheer waste precious time, as we know that deaf Government is busy in praising themselves (single way communication).
We Ask the government for fair treatment of tax paying citizens. Don’t treat them as dog but treat them as horses. Be accountable, responsive & assertive to the citizens. Don’t make mockery of Taxpayers by making contradicting statements on social media. Realise economy is suffering due to business closures, Loss of Skilled resources in understanding such systems. Forget Anti-profiteering, and pursue the real Loss to economy. Be responsive and design self-compliant and transparent system by way of wider referendum and involvement of Tax Professional who are real link between taxpaying citizens and Government.
People are using the social media peacefully to awake the government, and if government fails to react in right way, in no time taxpayers will be become tax evaders and will forced to be on road which will gain bring down the GDP (much higher than prediction of Silent but diligent Ex-PM).
Long live our Nation… Jai hind….
CA Mohammed Lakkadsha
05th September ,2017
mohdLak@gmail.com
Also Read- My Experience with GSTN- An Open letter by a CA to PM of India- Part II
We never find this kind of poor, weak and hopeless technical and IT support which is used in so called GST portal, besides it made all professionals and tax payers life horrible.
Congrats Very well drafted. Is it submitted on PGportal ? Direct to PMO office ?
The article is good.Since the system is in its infant stage, such shortcomings are natural.It is true that precious man hours are lost. The Government should assure that, no penal interest, late fee, penalty etc are levied till the system is made fool-proof.
So rightly stated. Thanks for taking efforts to highlight the misery undergone by all practising professionals and businesses…….
The article specifies real pains of business and professional community. But surprised to notice that no media is raising voice against this, No business or professional forum is forcefully representing to Govt. The media was very active in demonetisation but slept in GST.
Though i am a post graduate in commerce in 1986,I felt very difficult to submit returns. What stated in the above letter is quite correct.
Very rightly said and agreed with all the points.
waiting for response from FM.
Sir,it seems that total trade is puzzled due to change and govt is also in fog and enjoying. Due to lack of coordination between ministries and other authorised agencies schemes are failed and delayed.
Now our PM & God can save all this.
Nicely written..
I think one more important thing.. RCM provisions under Sec 9(4) should be deferred for atleast six months. How can you expect each and every data entry accountant to understand such tediuos provision. Practically near to impossible to follow.
i agree
Due date for filing of GSTR-6 is 8th Sep 2017, but till 12.15 pm on 7th Sep. the system not provided with any utility offline or online for filing. When they will provide the facility god knows …….
I AGREE . IN A COMING DAYS TRADERS MAY NOT RESPOND THE LAW AND THERE WILL BE MASS DIS OBEYANCE OF LAW.THERE SHOULD BE 9 DAYS TIME FOR PROFESSIONAL TO UP LOAD THE RETURNS.
I am not understand the all existing Tax system are option to Revise the Return and correct the particulars but why not given in this GST all the professional and businessmen are human being some mistake happen at the time of the issuing invoice and at the time of filling the data
Our Govt. has become very arrogant actually. As per FM all tax professionals are a big tax evaders. We are working under tremendous pressure and in between that wastage of time due to GST is not at all acceptable. we cannot plan any work due to GST. Just wondering, how the Tax and Company audit will be done,,,, GST is now :-
“GOD SAVE TAX PROFESSIONALS”
“GALTI SAARI TUMHARI”
“GHANO SARO TAX”
The Govt. has compelled to follow their laws without any completion of their Home Work
There may be around Ten Lac or more Registered GST Dealers now.
1. What GSTR3B is required?
2. It is required of all dealers to file GSTR-1, GSTR-2 and GSTR-3, as a registered dealer is required to file even NIL report.
3. In the event of non filing of GST forms, a minimum of Rs. 200/- per day penalty is applicable.
4. The site is not operative at all times, it is getting crashed again and again.
5. It is not understood, why Government is extending the due dates by 5 days at a time?
The filing of GSTR-1 even with 1 to 4 bills is taking around one hour.
The whole thing needs to be reviewed.
Best Observations. Even working in IT for years, I find difficult to understand logic behind vast reports and lengthy procedures. Further , system itself was getting revised on regular basis. If developers are not clear what they want, how one can expect common man to respond ? What measures are taken to reduce corruption is still a very very big question mark. And this is pro claimed clean and efficient government.
Thank for your review. 85% of Indians are for reforms. We cannot go back to 1600 years now. Bharat mata ki jai. You never voted to him neither support his vision so don’t misguide people. Resistance to change will happen & sometimes it would be rigid.
GST was implemented in a hurry burry due political reasons and nothing else.
We are struggling to add another DSC in place of primary one. But it’s not possible till date. GST-14 is always showing validation errors. No help from helpdesk as well.
VERY NICELY QUOTED THE PROBLEM OF THE TAXPAYERS & CONSULTANTS.
Sir,
very nice observation & noticed to gov.
our expreiance on the same.
a most related to software of GST i fined that i was filed trans- 1 in gst portal. in 5A, 7a, 7b. 6A coloum fullfil details .& filed 23.08.17. but Electronic Ledger Show Credit in Twice (just Double) helf desk ask & mail but no responce. some days ago gst portal Also reflect re-Submissition with DSC I have Second time filed.but till dt Electronic ledger show credit .twice.
I Completely agree with what he written in letter.
But Rather than just saying what is not good, he would have gave some suggestion by which GST Can be made Simple for Tax payer.
I am a small time professional who registered for GST though not required based on request from PM. The system is a nightmare. Now I am thinking of going out of business altogether. Is there no accountability at the government level?? Is the tax payer only responsible for everything??
Sir,
U rightly said, no body responding the problems, where ever Infosys enters, there will be 100%problems, like u know in MCA v2 version how the professional suffered still lot of problems exists, law saying something, system saying something.
I am totally agree with you. Even I wrote to helpdesk why they need DSC to upload return in case of Company and LLP. This can be done with OTP. I think the law and software is made by people who sits in AC cabin and have no practical experience of operation of business
very true ,if they have no full proof and according to act and rules system ,the have no right to force the implication and penalizes for the fault of the Govt.govt allowing extension of time for there mistake and insufficient preparation of software not for the problems of the business men.
CA Premchand Kadmawala
Yes another Technical Issue.
if the invoice is Issued in the Month of July while having Registration Under Process, GST Number allocation done in Aug by Department, But Now system is not allowing users to file returns as well payment for July-17,
This is also technical snag, As per provision if any person falls under GST within 30 day from he has to take GST registration, but Department had allocated GST Number in the Month of Aug then what about July Months Returns and payment of GST as the Customer have already taken credits based on the invoice issued.
This needs to be corrected in system.
Each and every word and observation is correct.
It is right time to act and bring parity at all levels.
T & R
K P Bhanu
I have also send message to Shri Arun Jetly FM on this issue and other issue also, I am also of opinion that if Hon PM takes this issue with office of the FM to work on grievances.
Why you are blaming the PM. The culprit is CBEC whose officers don’t want the system to succeed because then they will loose their importance. when the assessee himself doesn’t know under whose jurisdiction his regn falls, the CBEC officers are calling everyday asking for ‘REVENUE FIGURES ‘
PM at the meeting of Rajasva Gyan Sangam has told that officers of CBEC should have minimum interaction with assessee, and that too through digital means, The CBEC inspectors of mofussil areas/rural areas like Katol/Gondia/Kalmeshwar/Butibori in Nagpur region, donning the uniform are threatening the small traders/dealers/service providers under 20 lacs turnover for registration. Complaints to higher ups falls on deaf years
ONLY GOD CAN SAVE THE TRADE/PM FROM THE WRATH OF CBEC OFFICERS
agreed with all the point sir ji
Yes, Another addition is that
No clarity as to how to take GST credit if the invoice received from PURE AGENT Service Provider specifically in IMPORT clearing consignment.
The clarification should be covered with TDS provision as well.
Still it is in ambiguity.
Well written .honest feedback of genuine practical problems faced.
Issues May be taken note of and escalated by various associations /forums and complemented with other observations alongside so that it reaches all concerned forcefully and GSTN is suitably amended.
Hi,
Very rightly stated Sir,
A complaint was recorded on GST portal after waiting for around an hour on the GST portal and after repetitive follow ups no reply has been received from there end.
If this is how its going to change the nation, I think we are moving towards the worse..
Regards,
C.A.Vibhor Sanghi
+91-8802032451
I do not understand why everybody is blaming PM, my questions to all of us in professional community
1) How do you rate GSTN with your previous VAT/S Tax/Excise websites performance ? (Manual return vs GST return)
2) If it was good or bad, have you ever complained to the respective PM or FM of that time ?
3) After 21 yrs of practice how impatience we are ??? isn’t surprising ???
4) If we get fail in CA exam, whose fault it is of student or ICAI for setting difficult exam papers.
5) Any system need time to develop, (AAj ghee khane se kal kai gora nahi hota) it takes time ?
So note that everybody is preparing and it will take some time to habitual with the new system ??
It is a good effort at highlighting the difficulties everyone is facing.
However, in an open letter to the PM, the last 3 paragraphs ( after point number 11) are unwarranted.
I am fully agree to the points raised by this gentleman. It is not user friendly like the earlier systems. very rigid. lot of skilled manpower time is wasted in running this system, Finally due to the Govt fault unnessarily assesees are targetted by the so call officers of the goverment for interest and penalty.
Court should come in to the picture in future for any harassment by the govt authorities to business.
I appreciate the Points raised ( failure on the part of Govt, system administrators / adviser ) by our one of the professional friend . But none will care ( PM and his associates ) including our beloved Institute’s MPs, MAs ( Central council and regional Council members )
They may understand the difficulties but no voice before the Govt.
I am not against implementation of GST. but detailed home work and impact on the businesses and others associated service providers .
Complete mess .
Modi did only two things. One is demonization & other implemention of GST. Both are biggest blunders of Indian history. He just wasted both strong weapons. This man is over confident in his acts. God knows why he wants to do everything in so much haste. What he wants to prove ? I blame people more than him who are still singing ” modi chalisa” & living in fools’ Paradise.
Yes its the experience across India. Now Govt Dpet are asked to obtain GSTIN..no procedure in place and confusion galore..
it is really wastage of time by sitting hrs together for nothing. At the end you landed no where. No reply we are getting from GSTIN. There are numerous problems while doing work at GST portal.
Amendments in Registration not done after spending so many hrs. We professionals are spending so many hrs for which no fee will be paid by the client .
Very well put up.
Very Good Observation. I am also trying to change
Register No but there is no option.
Very nice observation.
I would also like to add one of my experience.
“No option to change trade name”
While doing GST registration for two of our clients the trade name get interchange mistakenly and now even after 2 month we have not get any solution of it. There is option to amend registration but no option to either change the trade name or cancellation.
Ravi Mehra
RG Cinsultants
Hi,
You guys are 100% correct, infact our Honble finsnce minister is suppose to be blamed for this blunder, who knows nothing than blaming others, if he is changed from current post & appoint new person with financial knowledge then only our country will improve, r else everything will be govinda.
Well written.
I agreed 100%. Slow and study is always best in all.
They may implement one by one (ie) Manufacturer, traders, exporter’s Wise in a phased manner. Over the period it’s become a great one.
Very rightly said and agreed with all the points.
Rightly stated Sir, If Modi Ji personally sit in the office of Ministry of Finance, ask for details of grievance received & action taken, definitely, it will put pressure on learned officials in FM to work on grievances. In fact, Modi ji gave free hand to these bureaucrats to do what they feel, this has been misused by these people. These bureaucrats are living with the environment of house keepers for every job, they do not understand what is happening at gross root level. I suggest learned officials in Ministry of Finance to come and sit in our office & give compliance of return filing under GST.