EASE OF DOING BUSINESS IN INDIA-ULTIMATE SUGGESTIONS UNDER INDIAN GST- BOTH IN THE INTEREST OF GOVT. REVENUE & STAKE HOLDERS

As Vice-President of Association of Tax Lawyers (ATL), New Delhi (Only Central Association of Tax Lawyers in India) welcome the various steps taken by our esteemed Central Govt. for the betterment of India. The implementation of GST was a step towards achieving the goal of One Nation, One Tax & One Market. Though efforts made by the Govt. are laudable, there are many problems in its implementation which remains to addressed. There is no definite prescribed authority to answers these problems. We are discharging our social responsibility to bring out the problems faced by Traders & Tax Professionals, the solution to which lie with learned officials in Ministry of Finance. These inputs are provided by many Tax Advocates & their clients engaged in different trade, and all efforts are made to keep it very precise and to the point as under:-

1. GSTN Portal Problems:-

Inconsistency in GSTN Portal, ie fields available in login of one dealer is not available in the login of other dealer. Option to chose composition scheme & cancellation of registration not available, even though composition scheme opted, it is not reflected in RC issued & getting message to file Form No.3B. In some cases, even though return filing options are available on dash board, return service option for month & year not available. In many cases, ARN’s not generated, show pending processing even after the lapse of time resulting in no action. Amendment, rectification and revision of Reg. Certificate & Forms within some specific stipulated time required in the GSTN Portal.

Govt. should increase nodes at receiving end of GSTN Portal to enable more assesses to give compliace at a time & should direct all broad band service provider to maintain consistent speed during due date for filing returns. Govt. should also consider the suggestions of Tax Professionals to file GSTR-1, 2 & 3 returns on quarterly basis on paying tax on monthly basis in GSTR-3B. This scheme should be applicable only to Non-Corporate dealers & for corporate dealer, due date to file returns should be changed to avoid due date rush in the GSTN Portal.

2. GST Healpdesk:-

Reply in helpdesk contradicts/overrides other sections of GST Act & there is no consistency in reply provided, in some cases replies are not given which may results in future litigation. Further, there is disclaimer clause in FAQ issued by Govt. ie, can the stake holder presume that the Council is not sure about the legal validity of FAQ issued ? Further, opinion given in GOI Twitter & hand books issued by Govt. are contradictory & there is no fixed authority to hear the voice of Tax Payers in local office. Do whatever you feel, we will correct it latter is the reply received from higher authority in local offices.

3. Goods & Service Tax Act:-

Simplification of India GST law is the need of the hour to get good support for voluntary compliace. Taxes should be collected by the Govt. like plucking flowers from the plant. Tax Law & procedure should be assessee friendly to meet cannons of good tax system. The procedure for filing returns should not result indulging in compliace round the year.

If our Central Govt. roll back RCM in GST, major complication in India GST can be solved by making necessary changes in the return forms. Our Central Govt. can take decision in this regard because output tax that goes to exchequer both with or without RCM is same. Very purpose of introduction of RCM in GST is to exempt certain class of persons from the ambit of GST & also to cover up URD purchases from dealers who come under exemption limit of Rs.20 Lakhs. Govt. can definitely consider this suggestion by reducing registration limit from Rs 20 Lakhs to Rs.10 Lakhs.

On looking at Rs.92,283 Crores GST collections for the month of July 2017, that too only from 64% registered tax payers, We hope our Central Govt. will recognize Tax Advocates for the purpose of Certification in GST regime. Because, major portion of GST collections has come by the efforts of related tax professionals who took much strain & strenuous efforts in filing returns, sacrificing the time to be spent for their families. One cannot imagine the contribution of related tax professionals to achieve this target, that too coping with the troubles given by GSTN portal. If our Central Govt. is really concerned about our fraternity, it will consider this request.

B.S.K.RAO,
Vice-President,
Association of Tax Lawyers,
Central Association of Tax Lawyers in India,
# 30, Deen Dayal Upadyaya Marg,
New Delhi-110002
E-Mail : raoshimoga@gmail.com
Mo.No.: 0-9035089036

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26 responses to “GST : 3 Key Suggestions to ease of doing business in India”

  1. BSKRAO says:

    B2B MATCHING OF BILLS UNDER GST SUGGESTED BY BIG FOUR AUDIT FIRMS OF INDIA TO CATCH-UP JOB WORK OF UPLOADING RETURN UNDER GST AT THE RATE OF RS.0.50 PER BILL. THAT IS WHY THEY HAVE NOT SUGGESTED PARTY WISE UPLOAD OF SALES IN GST RETURN. THEREFORE, I AM OF THE STRONG VIEW THAT THESE FOUR AUDIT FIRMS ARE THE MAIN CAUSE OF TROUBLE IN GST COMPLIANCE FOR ALL THESE DAYS AND DEFAME OF MODI GOVT.

  2. BSKRAO says:

    I think our Modi Govt. took right step of forming a committee to revive India GST. I suggest the Govt. to come out with similar return forms prevailing in VAT & just add one more column for output & input tax for services initially, then think about changing the return forms. In fact following are the main cause for failure of GST:

    1. Complicated India GST law
    2. Complicated Return Forms
    3. No correlation between GST Council & GST Technology partner
    4. In the return forms bill to bill & lot of other information sought. Here, party wise information should have been sought to ease the process.
    5. Presently available configuration of computer system unable to handle the information sought in the present GST return format

  3. BSKRAO says:

    GST Council assured to clear 80% glitches in the portal on or before 31.10.2017. When GST Council is not sure about clearing 100% glitches till 31.10.2017, how come GST N portal levying penalty for delayed returns. One side tax payers provide details for return filing to Tax Professionals well before the due date, but the Tax Professionals can not conclude return filing process within due date for the main cause of glitches in the portal. When they are about to file returns due date expires resulting in payment of penalty out of the pocket of Tax Professionals. This is main cause for tension which the Govt. can not understand.

  4. BSKRAO says:

    BUREAUCRATS IN MODI GOVT. NOT IN FAVOUR OF SIMPLIFYING INDIA GST LAW

    In the 22nd meeting of GST council, decision to delete RCM from statute book of India GST was not taken, but was suspended till 31.03.2018. Payment of tax in advance under RCM & advance received against sale of goods in GST are totally unjust & unconstitutional. Further, only about 60% of Business Expenses claimed out of an average GP of 10% on total turnover are subjected to RCM. What the Govt. is going to benefit by taxing this in advance under RCM in GST ? Even holding RCM is beneficial from the point of view of revenue, the trouble faced by tax payers in the return filing process outweigh the advantages. We do not understand the intent of bureaucrats in Modi Govt., whether to develop the atmosphere for ease of doing business in India to attract FDI or to complicate GST Law.

    If our Central Govt. roll back RCM in GST, major complications in India GST can be solved by making necessary changes in the return forms. Our Central Govt. can take decision in this regard because output tax that goes to exchequer both with or without RCM is same. Very purpose of introduction of RCM in GST is to exempt certain class of persons from the ambit of GST & also to cover up URD purchases from dealers who come under exemption limit of Rs.20 Lakhs. Govt. can definitely consider this suggestion by reducing registration limit from Rs 20 Lakhs to Rs.10 Lakhs.

    As Mr.Modi doesn’t know about tax law & policy, he gave free hands to bureaucrats. This has been consistently misused by bureaucrats while framing or amending policies. Therefore, I am of the strong view that we should blame bureaucrats in Mr.Modi Govt. who is defaming Mr.Modi ji & not Mr.Modi ji.

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