By extending the dates of GST and tax audit, the government has given clear indication that the government is not only sensitive about the real problems of taxpayers at this time but is also taking timely action. See, these dates had to be extended later because the covid-19 pandemic has not ended yet but there is a big difference between extending the date at the last minute and extending the date before reasonable time and this is a positive sign that if the government wants to give relief to the taxpayers and professionals at this time, then it also creates an expectation for logical solution other problems. Let us talk about some more problems and issues that need immediate relief and action to solve these problems since 40 Months have already gone after introduction of GST in our country and these problems are troubling the Dealers and Professionals.

1. Make the Rules Related to ITC Simple and Rational

Rule 36 (4) and section 16 (4) of GST are there with relation to claim of ITC but the dealers need some relief from these provisions these cases the government has either received or will received tax and interest from the seller. Therefore, depriving the buyer of input credit is not justified by applying these provisions. In fact, in this regard, it is a wrong policy to collect tax from the buyer tax though the buyer has already paid it to the seller. This is copied from the VAT. But if you believe that GST was brought in to improve VAT, then if GST is going on with the same flaw then what is the benefit of this change to business and industry? Many times, the question also comes from the business and industry, what kind of simplification it is.

The government should make an equitable provision in this regard and should always recover this tax from the seller along with interest. For this, the government should take a purchase list from the buyer along with the details of the vendors and in case of mismatch, recover it from the vendors or give them a chance to rectify their returns. This process of collection the mismatch tax from the buyer may be the easiest way to recover by stopping the input credit., but this method is neither practical nor practical. It is beyond control of buyer to check his seller and in my opinion, it is duty of Govt. to do complete this task.

GST Goods & services tax with Indian currency notes

2. Re-Granting GST Amnesty Scheme with Relaxing 16(4)

The dealers are unable to avail the benefit of GST amnesty scheme, due to Corana, if the benefit of this scheme is given again, along with giving them freedom from Section 16(4) then it will be a very useful scheme.  If the government seriously wants to bring these missing dealers into the mainstream, then this plan should be considered once again for the benefit of Trade and Industry and in turn Economy. The GST scheme with provisions of Section 16(4) is not very useful. 

3. Give Relief to Composition Dealer

The date of GSTR-4 is also coming but due to the need for details of purchase in it, most of the dealers are not able to fill it, then it would be reasonable to accept their demand to extend the date and remove the details of the purchase because a composition dealers It is also difficult to keep records And secondly, when there is no reverse charge, then there is no justification for asking for purchases.

One more thing is that when other GST dealers are not able to fill their annual returns, then how can it be expected from composition dealers whose resources are limited that they will be able to fill their annual returns in present time. The due date for the GSTR-4 should be rescheduled properly. 

4. Allow Dealers to Rectify Mistakes which are not Tax Evasion

Inadvertent mistakes made by dealers, which are not tax evasion, should be given an opportunity to rectify them right from the beginning and allow revision in GSTR-3B. This return of GST was not in the original scheme of GST and was brought for only two months but even after 40 months, this return remains the same but probably due to technical flaws of the system, there is no facility for change or modification in this return. It should be noted Given that there is no restriction on return amendment in the GST law.

This GST return GSTR-3B is only a return and not the whole GST  but due to lack of provision for amendment of this return many problems of GST tax adjustment have arisen and if an opportunity to amend this return is given from July 2017 itself , most of the problems related to GST adjustment will be solved and in this way, notices to be  given in lakhs will also be stopped.

5. GST Late Fee Collection should be Rationalized

The GST late fee should be kept lower than the actual  tax paid in that period and the dealer who has paid the late fee for the time period for which the government later waived  it, then such late fees should be return back to such dealers and it will certainly be a very reasonable decision.

6. GST Network to be Improved

The GST network Service provider and team can make any number of claims on its own with respect to the GST Network, but till now even after 40 months its status has not improved and this network continues to be a problem for the dealers and professionals.

It is always the news from GSTN team that everything is fine but in fact the GST network is the biggest obstacle due to its limited capacity and it is a big problem for dealers and professionals.

The Government should take care of this problem of GST Network on priority. 

7. The Annual Return of GST Should be Made Practically Useful

The way the annual return of GST is drafted is not very useful and in a way this return is also confusing to the dealer, hence there is a need to re-draft this return. There is a dire need to change this return too. If this return is to be made practical then the dealer should first be allowed to disclose the mistakes which are not corrected in GSTR-3B due to lake of correction facility.

Due to this i.e. the restriction on revision of GSTR-3B , the dealer’s output and its set off are not being correct and the same difficulty applies to the input taken wrong from one head to another. The government should make this annual return in such a way that it can be useful for the actual tax liability of the dealer and how he has paid it and that should be the aim of this return.

GST is a tax here to simplify the collection and deposit of tax but it is turning to be a tax which testing the technical expertise of professionals and Dealers with a restriction that Mistakes can’t be rectified.

8. Let’s Revisit the Objectives of Bringing GST

The government should once again take a look at the basic objectives of GST that GST was to simplify the indirect tax system and simplify the procedures related to it, but now after 40 months, one should see how much success has been achieved in these objectives. The general opinion is that indirect tax system has become more difficult after the imposition of GST and the processes have also become quite complex. The government should know from itself what position GST is currently in and if there are deficiencies in this way, then immediately start the process of reform, otherwise the GST which was introduced to become the growth vehicle of the economy is now becoming a cause of trouble for Trade and Industry.

“GST will be successful if it is simple and easy” .

CA Sudhir Halakhandi |  [email protected]

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  1. Raghu Kotian says:

    Whatever you said is in the interest of GST itself and in the interest of GST tax payers who are the backbone of the system.

    Well said Sudhir ji.

  2. Shine says:

    What you said is correct. ITC should not be denied to taxpayers due to default of suppliers. ICAI can take lead and resolve all the problems. Why are they silent on the issue. You have to answer since you are a member of ICAI.

  3. Raghu Kotian says:

    You have said the right thing. Let us convince them that the Laws are made for the benefit of people and not to punish them. The way the GST law is now implemented it is intended to hurt every abiding citizen who willingly wants to pay tax.

  4. Kishore Gandhi says:

    GST is too much difficult then the VAT..till date they have no any system to show the mismatch position..any how its very good artical..

  5. Padma Balakrishnan says:

    All the points mentioned are correct. Especially late fee paid earlier before Amnesty scheme needs to be returned as a measure of Equity.Also the point regarding details of Inward Supplies from Compositiion Dealers is also a valid point.Hope Govt hears us.

  6. NIRAV says:


  7. janaki ram kota says:

    Sir, it is unfortunate that an attitude of we versus they has crept in the whole gamut of GST – from the application stage to administration stage. The trade and professional body instead of constantly poking and finding a fault with the Government should be sympathetic,understanding and co operate. The trade and industry along with the professionals fight for the eradication of corruption in the official circles and the officials should administer the Act with iron hand when they see the corruption. If this is done all problems over a period of time get solved. Every thing would fall in line. If the trade and industry take a firm step that they would not pay the bribe come what may there would not have been a necessity for change over from sales tax regime to VAT regime to now GST regime. The sales tax act it self would have been kept with improved/modified provisions to meet the requirements of the day keeping the basic tenets as it is. It is an established fact that shift over to newer regimes had to take place mostly because of corruption. If there is no giver there would not be any receiver. When all of us expect the Government to take care of infrastructure facilities, law and order etc., which all need money – where would that come if we do not co operate with the Government in letter and spirit. I am telling people not to pay bribe and fight out when there is demand for a bribe. At the same time when an opportunity comes telling the officials not to expect anything from the Dealers other than lawful co operation in the discharge of their duties. Yes it is fraught with many difficulties- including people looking at me as a mad man. So at the end of the day what I urge the professional lobby is convince the trade and industry to fall in line with the requirement of observance of law. If the seller who is also a part of the trade lobby fulfill his obligation then the buyer is not put into inconvenience and difficulty. Who is most suited to play the role of well wisher to the industry, none other than the professional. When we come across reports of scams of a very high magnitude are taking place, can one deny that at least some black sheep in the professional lobby has actually patronized the same. All the difficulties would get over if the mind set of we versus they is removed while dealing with the problems. We and the Government are one and the same.

  8. Venkatesh Prasad D says:

    GST is a cascading tax system and the emphasis of the collecting agencies should be on the B2C tax payers and not on any B2B payers. So all irritants like e-waybill etc are redundant.
    The tax payers should be required to file only a monthly return giving (1) gross output amount and tax thereon for various slab categories and (2) detailed claim for ITC with GSTIN. No other return is needed. Soon after that filing, the GSTN should collate all input claims against a given GSTIN and compare it with the gross output shown against that number. If there is a shortfall of output, a notice should be sent to the GSTIN seeking breakup of the output GSTIN wise and with that track the reason for the variance. This involves a once a month batch run of the computer system and less expensive than bill to bill tracking attempted by GSTN now.
    The Annual return and Audit will be required only for B2C sales and should be comprehensive. In all other B2B cases, no audit should be required. B2B and B2C sales should be segregated at the time of invoicing and an invoice marked B2C should not be eligible for ITC.


    If no extension in GST Amnesty is granted the registration of many merchants might get Cancelled. Due to that, GST input tax credit will be mismatched and legal proceedings will be started against genuine taxpayers. Which will lead to a huge loss of time and resources for both the Government and the taxpayers.


    It is feared that the MSME will be forced to stop their function if no extension is granted to them. It might cause an increase in the number of unemployed people. If no extension in GST Amnesty is granted the registration of many merchants might get Cancelled. Due to that, GST input tax credit will be mismatched and legal proceedings will be started against genuine taxpayers. Which will lead to a huge loss of time and resources for both the Government and the taxpayers.

  11. VIJAY SHETTY says:

    The suggestion is very good. It is also felt that there is no sense of quarterly GSTR-1 for small tax payers and monthly GSTR-3B, since for arriving figure of liabilities one has to make a statement of Invoices hence it may not be difficult to upload in GSTR-1 , however if GSTR-3B is made quarterly there will be sense.

    Further, this year most of small tax payers have opted for monthly GSTR-1 since they are not getting payment unless their invoices are visible in GSTR-2A by customer.

  12. Tarunkumar D Trivedi says:

    Sir, nobody raising problems of composition dealers, you are the first who has raise voice for such small dealer. I totally agree with with you that there is no need to give details in table 4A in respect of inward supplies received from registered dealers.

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September 2021