The Goods and Services Tax Act, 2017 has introduced and was effective from 1st July, 2017. Since then there were several problems arises. There is certain great failure on the part of the law makers which results in big hole for Government exchequer.
Out of which let us know some of the procedure lapses committed by the law makers:
Firstly the very purpose and object of implementing the Goods and Services Tax with effect from 1st July, 2017 is to be a unified tax for the entire nation, to replace a lot of other indirect and direct taxes like the VAT, service tax, luxury tax etc., aimed at being comprehensive with most of the goods and services included, to eliminate the cascading effect of tax, to improve the competitiveness of the original goods and services, thereby improving the GDP rate, to ensure the availability of ITC across the value chain, to reduce the complications in tax administration and compliance, to make a unified law involving all the tax law bases and to bring uniformity across the country, to eradicate unhealthy competition among the states and its taxes and revenues, Reducing rate of taxes to avoid further clarification issues. The object of the Government is good but while coming to implementation, it is utterly failed and created threat in the hearts of the trade and industry.
Let us know the shortfalls:
Due to sudden implementation of the Act without providing proper mechanisms and trained to staff. Here we have to appreciate the Government while implementation of VAT Act. There are thousands of awareness programmes and excellent training to the Officers and staff as well to the trade and industry and so, there were no problems in implementation of the VAT Act in the country and everyone has accustomed to the Act and procedures within no time. In this regard it is to be accepted by universe that the government is failed in implementation of the Act.
Now the GST Act is nothing but for Notifications, Circulars, and Government orders.
Before keeping the mechanism ready, implementation of the Act has given big stroke to the Government revenue a lot.
Due to lake of coordination between the Commercial Taxes and Excise departments the dealers have two registrations and knowing the fact the departments have cancelled the registration thinking that the other department has allotted GSTIN. Ultimately the dealer has no registration or having two registrations.
Specifically no need to say that there is a great opportunity for tax evaders for tax evasion .
Now coming to the next point is filing of GST returns:
The monthly returns are not allowed to upload till payment of taxes made resulting which many businessmen keeping quit till they receive money from their customers. Most of the dealers discussing with the other party and removing the sale and purchase resulting big hole to Government exchequer. The Government proudly states that 1 Lakh crores collections were made but it will reach 5 lakh crores if the system changes a little that shall not be any connection in filing the returns and payments. So that the dealers will fix their liability and they will not go back. Return filed once it is settled liability. As for as collection of tax is concerned the Government have so many remedies and ways to collect taxes along with interest, penalty etc.,
The returns shall be very simple like in VAT Act. However uploading of sale and purchase invoices shall be completed within three months from the date of completion of a month so that, sufficient time will be there for the dealer or to his Auditor / consultant to upload correctly.
The system shall be dealer friendly and easy to access.
It is appreciated to give ruling to the question asked for. Example what is the rate of tax for Bearings? For the small question there will be 20 to 25 pages of history, judicial pronouncements, departmental views and finally the ruling will be given in one or two sentences. Like the rate of tax for bearing 5% under HSN code 8482. The very purpose and need of such elaborate, unwanted information shall be eliminated.