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CA Umesh Sharma

CA Umesh SharmaArjuna (Fictional Character): Krishna, the festival of Makar Sankranti has arrived. Small children have started to fly kites. Even the Government is also trying to fly the kite of GST from last six months. So what would you like to tell about that?

Krishna (Fictional Character): Arjuna, Generally, on Makar Sankranti we say that “Til Gul ghya, god god bola”. But the Government always do different things. It says to taxpayers, “”Til Gul ghya, GST che Niyam Paala”, i.e, Take the Til Gul, Follow the GST Rule”. If we compare GST and kite flying then the person who is flying kite is Trader, “kite” is GST, “Chakri” means books of accounts, “jumbling in threads” means Returns, “Air” means Tax collection, “Cutting of Kites” means Matching mis-matching, and “String” means Law. But this year, the Government has bring the new string of E-way Bills in its market. The person taking “Page” is tax officer and most important is the person giving ease (Dhil) is Tax consultant. After this festival there will be change in the weather, the cold wind tends to reduce and warm wind will blow. The similar thing has happened in current year. Instead of the cold wind of indirect taxes, the warm wind of GST is blowing. Currently in the month of January there are lot of kite flying in GST. As while flying of kite, there is jumbling in threads. Now the tax payers and tax consultants are suffering from a similar situation.

Kite fight of GST

Arjuna: Krishna, Why there is jumbling in filing of returns?

Krishna: Arjuna, As there are so many changes taking place in GST regime, the Government is extending the due dates for returns. Continious returns are to be uploaded by the taxpayers. On one day- 3B, next day- GSTR 1, then GSTR 2 and finally Final return of GSTR 3 are to be filed. Now there is hurry for uploading the returns. So, due to due dates and hurry, there is jumbling in returns.

GSTArjuna: Krishna,In case of GST, how will be the cutting of kites ?

Krishna: Arjuna, In case of GST, the cutting of kites means concept of Matching mis-matching. The cutting of kites means cutting another kite by our own kite. Similarly, matching mis-matching means the ITC of the recipient for inward supply to be accepted only if corresponding outward supply of supplier is matched. The ITC will be available on the ground of matching mis-matching. But this concept is not yet introduced. There might be cutting of kites in case of GST Network. In matching mis-matching, the taxpayer whose supply will match, he can fly his kite. But whose supply will not match, his kite would be cut.

Arjuna: Krishna, how is the Air of GST now?

Krishna: Arjuna, As there is happiness in flying kites only if there is wind in the atmosphere, in that way, the Government will be happy only if there are huge tax collection. At this moment, there is less collection of tax than assumption. As per reports, the Government has collected approx. 92000 Cr. Tax by way of GST. Similarly, in August 90000 Cr, in September 92000 Cr, in October 95000 cr, and in November 83000 Cr. Revenue is collected. Therefore, as there is less collection of revenue, the GST kite is in thin air and government is in stress. Now full swing of air will be brought back only with the upcoming budget.

Arjuna: Krishna, Now what is the situation of tax consultant?

Krishna: Arjuna, there is hustle bustle of VAT Audits for tax consultants in Maharashtra. The last date for VAT Audit is 15th January and the Due date of GSTR 1 is 10th January. So due to this, tax consultant are in dilemma. They are very much confused that whether kite of VAT is to be flown or the kite of GST is to be flown.

Arjuna: Krishna, What lesson the taxpayer should take from this “Patangbaazi of GST”?

Krishna: Arjuna, flying kite with string coated with glass has threat of cutting hand, there may be scratch on hand. Therefore the taxpayers should follow the rules. They should not take the law in hands. Else they may get in trouble and hurt themselves.

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Author Bio

1. Central Council Member of ICAI. 2. Vice-Chairman of WIRC of ICAI for the period 2015-2021. 3. Youngest Chairman of Aurangabad Branch of WIRC of ICAI in 2002. 4. Author of Popular Tax articles series based on Krishna and Arjuna conversation i.e “KARNEETI” published in Lokmat on every View Full Profile

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July 2024