Dear GST Team:
Namaste
This is with reference to deliberation of returns filing under GST for Sales / Sales Returns/ Purchases / Purchases returns.
GST is vatable and the ultimate tax is paid by the consumer. Hence, the revenue is recognized when sold to consumer except for value added at each time of transfer. Hence, the opinion is to allow sales returns / purchase returns without any time limit with offset of GST. This totally eliminates the mechanism of returns and be replace by tax invoices (considered as sales / purchase at all the times ) . This sets at rest the matter of returning goods.
Next step is the upload of details of sales and purchases. It is advisable to ask every dealer to upload the sales and purchases during the month. And computer can match this uploads of sales and purchases of dealers. This was being done under the Karnataka Vat regime. And it is very user friendly. Changes to suit the same to GST can be easily carried out and in short time.
I am appending their modules for ready reference of the council.
Once the data is uploaded and matched, the return can be auto populated and taxes paid accordingly. The tax payment portal of KVAT is very user friendly and the same can be mentioned in the return to link the payment by CTD reference generated. I request the team to review this facility and minor variation will be easy to carry out.
The need for cash ledger, credit ledger and liability ledger is eliminated as the net payment is made as per the return. This simplifies the procedure saving lot of time of the dealers and Government. We are so advanced in software that lots of procedures can be auto populated from basic data uploaded and with ease. The coordination between the GST Team, The Software Team and Accounts Team will give us the best software, that is easy and user friendly.
There will be no URD, as suggested via my earlier mail, because every one has to register under GST. Only dealers falling below Rs.20,00,000/- turnover per annum need not file their monthly returns. They will be required to file an annual return and pay Rs.5000/- ( or as deliberated by GST Council) per annum. They can be allotted GSTIN with some unique character to identify as dealers below rupees twenty lakhs per annum. Even the composition scheme should be done away with as the dealers can take input credit and they collect and remit the taxes. { Their turnover is above Rs.20 lakhs }
There will be only 2 schedules under GST ~ 1) Exempted, Nil Rated, Zero Rated supply and services under SCHEDULE 1 and 2) Rest of the supply and services shall be taxed at 18% under SCHEDULE II. {This rate can be reviewed at periodic interval}.
In the wake of the above there is no need for reverse charge mechanism except as prescribed under section 9(3) { This too can be reviewed and revised as per GST Council}. This takes off the bigger/greater load off the back of business community. This does not impact the collection of revenue. However, if the Government wants statistics , they may add a page in the return to file the monthly/ quarterly expenses for statistical purposes.
The following are the links to KVAT Website.
http://vat.kar.nic.in/vat1/login.aspx
and
http://vat.kar.nic.in/ { click on : for other e services, please click here to continue} You canlogin with the id from any officer in Karnataka Vat.
The EXCEL/XML modules for upload is appended herewith. Any software can easily generate the data into Excel sheets and to XML. The columns in this XML files can be modified to suit the GST requirements.
The purchase data uploaded by the dealer is cross matched with the suppliers uploaded data and differences if any are shown under the mismatch statements generated. { Invoice number, invoice date, not uploaded etc., are pinpointed and the same can be corrected by the dealers from their end.} Once the data is matched, the return can be auto populated and liability conveyed to make the exact payment. Once the payment is made, the return can be submitted and filed.
This monthly data can be auto populated for 12 months to generate the annual figures. And if the dealer finds any variation be allowed to correct the data through annual return or just click “verified and found correct” button on this page.
Initially it may take some time to set the software, but once in place lot of manual work ceases and computer generates the required reports.
Shall put in more details as n when the same arises while interacting.
Thanking you all in advance
We walk with you the path towards Development
Warm regards
Lots of Love
Mukesh parmar.
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