GST was Introduced as a Good and Simple Tax but for whom???

It was expected to be Good and Simple for the public at large but now it has become Good source of Revenue by way of late fees, interest and penalty for the Government.

Today’s hot topic for every professional is interest on GST Liability, which should be deposited to the Government as a compensation for delayed payment of tax on gross liability or net tax liability…

Considering the representations made by the professionals and trade GST Council taken a decision in its 31st GST Council meeting held in 22nd Dec-2018 that interest to be charged on Net Tax Liability and suitable amendment in this regard will made in Law. In spite of elapsing more than a year govt. has not made taken care of the decision taken by GST council.

In a recent tweet by the CBIC, it was informed by CBIC team around 12:41 AM · Feb 15, 2020 that they are working hard in implementing Such amendment will be made prospectively. The States of Telangana and West Bengal are in the process of amending their State GST Acts. After the process of amendment is complete, the changed provisions can be put in operation for the entire country.

By reading above statement of CBIC which was made midnight it seems that Govt. is falling short of revenue collection and by delaying the implementation of proviso of section 50 Govt. is planning to meet its target collection. After reading the tweet of CBIC it is clear that Govt. is not intended to give the benefit of the proviso to section 50 of GST Act with retrospective effective.

I have filed a RTI in the Month of April-2019 where some questions were asked from GST Council which were replied by the CPIO which are as under:

Que 1: Whether decision taken by GST Council are binding on the CBIC?

Ans by CPIO: GST Council has been empowered under Article 279(A) (4) of the Constitution of India to make any recommendation to Union and States on any matter relating to GST. Every decision of GST Council shall be taken in a, by majority of not less than 3/4 of the votes of the members present in the meeting.

Que-2: Is there any chance when any decision has been taken by GST Council but CBIC may reject the same due to any reason?

Ans: by CPIO: No.

Que-3: What is the maximum time limit by which decision taken by the GST Council is to be made effective by issuing the Notification or amending the law?

Ans: by CPIO: No such maximum time limit has been prescribed. However whenever during the meeting of GST Council the date for implementation of any decision has been decided, decision have mostly been made effective from that date

Que-4: Please give the list of matters on which decision has already been taken by the GST Council but same is pending before CBIC.

Ans: by CPIO: Decision taken by GST Council are available in minutes which are available on GST Council website. Further Action pertains to Union and State Government.

Que-5: In 31st GST Council meeting held on 22nd December-2018 a decision was taken as mentioned in Page No. 85 of GST Council Minute Book as Agenda No. 7 (xx) (2/2) (Proposal for amendment of Section 50 of CGST Act, 2017 to allow payment of interest on net cash liability). but even after more than 4 month decisions taken was GST Council is not made Effective. Please let us know the date of making effective the such decisions ?

Ans: by CPIO: Decision taken in 31st GST Council meeting on Agenda No. 7 (xx) 2/2 [Proposal for amendment of section 50 of CGST Act, 2017 to allow payment of interest on net cash liability] is likely to be made effective in next GST law amendment.

Now Certain Questions coming in the taxpayers and professionals mind of this country regarding GST which are as under:

1. Why Government is deferring the implementation of proviso to section 50(1) of GST Act from so much long time?

2. Why Government is not implementing proviso to sec 50(1) with retrospective effect?

3. Why Government is so much interested in collecting the revenue from public by imposing illegal and illogical interest amount on input Tax Credit portion in which Government has received or will receive with interest?

4. Why Government has made retrospective amendment to made GSTR-3B as a Valid Return after the decision of Gujarat High Court?

5. More than a year time period has been elapsed after taking the decision by GST Council to amend the law relating to interest in Net Cash Liability, why it has not been made effective till date?

6. Why there is deadline only for the taxpayers and tax professionals but not for government?

7. Why Government is not accountable and responsible for the timeliness of the action which is to be taken by them, why Public is to suffer for the delay act by the Government?

8. Why only Taxpayers are penalised with late fees and interest for delay in compliance fixed by the Government why Govt. is not responsible for timeliness?

9. Why GST Portal has been developed with such a poor infrastructure which cannot handle the load of more than 1.5 lakh taxpayers whereas there are approx. 1.25 Crore Registered taxpayers?

10. Why Taxpayers are not allowed to file and submit the returns manually in case there is fault in GST portal?

11. Why Govt. not release the forms in time and it also not accountable, whereas taxpayers are responsible to late fees, interest and all for even a delay of one day?

12. Why Government is making GST law and procedure in such a manner which is detriment to the interest of the Taxpayers specially MSME?

Why Every trade associations, professional association are waiting and for for what???

Kya Mann ki Baat Kewal Hamare PM sahab hi Kar Sakte hai, Hm Ye Questions puch bhi Nahi Sakte Sarkar se? Modi Ji Is Baar Mann ki Baat k Liye Aa Rahe Hain, 23rd Feb Ko Aur Unhone Topic k liye Sujhav Mange hain 20th Feb Tak…

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This Mann ki Baat is written by: CA Himanshu Singh and he can be reached at Mob No.: 9125777007 or at Email Id: [email protected]

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Qualification: CA in Practice
Company: D R A & Co.
Location: KANPUR CITY, Uttar Pradesh, IN
Member Since: 01 Feb 2018 | Total Posts: 4

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