Arjuna (Fictional Character): Krishna,. On the tenth day, “Dusherra” would be celebrated to mark the victory of good over the Evil. Evil thoughts are burn out, thus how 10 GST burning issues would be resolved?

Krishna (Fictional Character): Arujna, as the effigy of Ravana which symbolizes the bad, the evil, the issues in the society which need to be burnt and waded away from the society, similarly there are issues in GST which needs to be taken care by GST Department and needs resolution quickly.

Arjuna: Krishna, Ravana had 10 heads, which are symbol of evil. What are 10 burning issues in GST that need to be resolved?.

Krishna: Arjuna, following are the major 10 Burning Issues under GST:

10 Burning Issues under GST

1. The September 2018 GST Return

The return in which effect of any changes in respect to earlier financial year can be taken till  return of September 2018, Specially the Invoice wise ITC details if any. Also the ITC credit if any unclaimed or claimed in excess needs to be claimed or reversed as may apply. This is absolutely wrong provision, time should be given till the date of filing of Annual return i.,e Dec 2018 to corrects all mistakes.

2. The Annual GST Return

The Return format have been made available but the utility for the same is not available, though the due date to file the return is 31st Dec 2018. Further Annual Returns do not provide complete solution for all problems like Invoice Addition, modification, etc. The due date clashes with MVAT Audit Report due date i.,e Jan 2019, hence date needs to be extended well in advance or again extension of date issues may arise like of Income Tax audit due date.

3. GSTR 2A

GSTR-2A is available on the portal on monthly basis. Annual 2A cannot be downloaded. This has increased the difficulty to match the Books of Accounts with 2A. This has increased boredom as same thing needs to done monthly.

4. Reversal of Credit

The credit claimed wrongfully or unintentionally needs to reversed. In addition, the credit taken on purchases, where payment has not been made to suppliers within 180 days also needs to be reversed. Keeping a track of this is the real big burning issue.

5. Extra Tax payment in Cash Ledger!

Arjuna, GST was new for everyone and now books have been closed. Some people have paid taxes in excess of required amount. However, there is no option correct the challan paid and issues arise in refund claim of the same.

6. Composition Scheme- purchase reporting

In GSTR 4 in Sept 2018 qtr, the composition dealers needs to provide Details of Purchases made during the period. It is also one of the issues, as composition dealer is not allowed to take the credit of Input tax credit so keeping the detailed record of the same is tiresome.

7. Issues of GSTR 3B

Amendment to this return is not available. If any change needs to be made then, one needs to wait for the next return or annual return. Thereby increasing the interest day by day if any liability arises due to such rectification.

8. Issues of GSTR 1

Amendment to GSTR-1 is allowed in other period GSTR-1. But it is interesting to note once amendment is done the same invoice, credit note/debit note or B2C sales made cannot be amended again. That is to say only one chance is available to make amendment.

9. Taxation of Agricultural Commission agent and Joint Development Agreement

Recently clarification were issued in this relation, A big issue is for commission agents of Agricultural produce, Tax needs to be paid on commission in relation to taxable goods but where the product is NIL rated, and its commission won’t be taxable. Taxation of JDA for builders and Landlord is a burning issue.

10. Trans 1 issues

Trans 1 notice in Form 603 is now send by Department in large. This is going to create harassment to genuine tax payer, as all records which available with dept are again asked for. Further VAT credit as per revised returns needs to be allowed, a unnecessary harassment is done in such cases of Trans1 litigating it. Various High courts’ order has compelled to allow Trans1 uploading or credits were hardship to taxpayer had happened. This, trend is disturbing, Sue motto department should allow to correct errors or omissions.

Arjuna: Krishna, What one should learn from this Dusharra?

Krishna: Arjuna, Govt should help the taxpayer. These 10 Burning issues need to be resolved immediately and Raavana of GST needs to be burned out. GST law is simple, but the technical issues and mindset of officers needs to be take care off. In real life and tax laws, there will be always victory of truth over lie. Happy Dusharra to all.

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One Comment

  1. RM says:

    GST TDS : –

    If the gst rate for government work contract rate is 12% ( cgst-6% sgst-6%), The govt will certify the work bill for value of work done + [email protected]% and recover 2% in running account bill. how balance will be cleared net off gst input on inward supplies.the changes in contracts and legalities related to gst clauses need be amended/changed in agreements.web based control of gst law is serious evil, there are no dearth of chanakyas -experts in artha shastra.

    One nation – one tax means income tax also need to be merged with GST to create more mess in doing business. Run business by law not talent.

    the tds will be recovered by govt employer agency @2%. gstr7A is issued. if the work is sub let wholly how the gst certificate under 7A can be transferred to subcontractor of the main contractor of the govt works contracts.

    Under income tax act, TDS at the whole rate of tds is deducted and remitted, where as the under gst Only a part of rate of gst viz 2% against 5/12/18 related to works contract services is recovered. how the whole complexity is captured under gstn portal, reports, certificates and formats need be guided to public with input and report formats.

    what is the mechanism for balance 10% of gst. How the entries are made for same under gst portal. also the issue gets complex when the main contractor sub-lets the works under contract act on back to back , turn key, piece rate or labour or item rate, lum sum, fixed price, nature of work wise contracts etc executing particularly in the rural/remote areas.

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June 2021