It has already been 2 and half months since GST is implemented. It has brought a panic among small retailers during its early implementation that no supplier will provide them goods if they are not registered under GST. So the small retailers who make their livelihoods by depending on their small shops also took GST registration even though their turnover was less than 20 lakhs…all thanks to the rumors in the market and also some of the inexperienced consultants who wanted to fill in their pockets.
The cost of administration of GST Compliance is too high for small retailers so they end up with consultants who provide them registration and returns filing at a cheaper rates. Even many Chartered Accountants are not taking up GST work as the cost of compliance are too high as compared to the fees charged by them and retailers are finding cheapest way to get their work done no matter how inexperienced or lack of knowledge a consultant possess. There have been many consultants who rather possess little or no knowledge on GST yet are getting a good amount of GST work as they have understood the mechanical process of registration and filing GST returns. The small retailers are advised not to fall prey to cheap rates of consultants, if he possesses good knowledge and is an experienced consultant it is suggested to go for the same.
Also there have been instances where small retailers failed to opt for composition scheme before 16th August, 2017 and now they are left with no option but to file monthly GST returns. There has been a Press Release dated 09th September, 2017 that government may start composition Scheme again for Financial Year 2017 – 18 but it has not yet started.
Even GST help desk are suggesting that for the time being now wait for few days the option to Opt for Composition Scheme might get activated. So do not rush to file your GSTR 3B and GSTR 1 as the due date to file has already been extended and for those who still wish to opt for Composition can wait for the option to get activated for Financial Year 2017 – 2018.
The cost of filing monthly returns is quite high then that of the composition scheme. So small retailers are advised to opt for Composition Scheme and those who failed to opt for composition Scheme might wait for few days to get themselves registered under Composition Scheme.
Conclusion: Due to lack of knowledge among the retailers and even certain inexperienced consultants, retailers are the one who end up paying heavy prices, not in the short term but certainly in the long term. So retailers are advised to take guidance of the right experienced consultant who can help them not only with their GST returns and registration but can also help them to plan their business taking GST into consideration.