Lot has been written on this subject. Problems are in every nook & corner. Either they are policy related or software related. The worst problem is: Anybody listening to the cries?

I would like to re list the issues:

1) It has been proved that the GST software is not tested enough for its various functionalities.

2) OTP does not get instantly.

3) Why validity for OTP is only 10 minutes?

4) Many of my clients got irritating calls from department to complete migration process even after successful completion of migration process & even after filing returns and sending proofs of all this.

5) Even the ground staff has not been trained properly & not able to sort out issues.

6) While doing registration, many times site throws you out.

7) Many times you get message “This site is asking you to stay on page” but actually it is hung at that time. What is use of such stupid alerts?

8) There is no provision to revise GSTR3B or edit after submission. Why you want to be so rigid?

9) CGST, SGST & IGST cash is not internally transferable. When you allow IGST set off to adjust against IGST, CGST & SGST; when you allow CGST set off to adjust against CGST & IGST; when you allow SGST set off to adjust against SGST & IGST — then what is harm in allowing same thing in cash?

10) Under RSM, Reverse Charge paid in previous month is adjustable in next month; but, only against normal tax liabilities – why NOT against the reverse charge payable in this month? I am telling you MR. PM/FM; don’t forget business people are back bone of the economy.

11) One of my client paid tax online but got the MSG that “Transaction Failed”. We re-paid the same thinking that the amount of failed transaction will come back to bank account. But, after 18 hours the 1st transaction too got successful & amount got credited to the GST account. So, he landed up paying double. This is sheer nonsense & worst kind of inefficiency.

12) Apart from all these problems described above, there are many more problems like opting for composition scheme, time taken in downloading error files etc.

13) Mr. Adhia says, CAs are misguiding people. There is only one return – GSTR1 to be filed. GSTR2 & 3 will be auto populated. You have to JUST CHECK them!!! I would like to ask MR. Adhia, if there are 500 bills from say 50 suppliers – Do you still say it is “JUST CHECK”??? And look at your format: You only give list of GSTIN. Click on each, open list of bills, check every bill…. You say it is easy. What about other details like RCM, missing bills etc to be filled? Including GSTR3B, now there are not 3 but 4 returns!!!

14) GST is best thing but if you don’t make it user friendly, if you don’t listen to the painful yells of practitioners & business community, if you don’t redress the issues it is going to be a worst kind of nightmare.

15) You look at things from top & I look at them from bottom. I want to tell you that– please, don’t treat taxpayers like criminals & thief. People DO WANT to pay taxes to build nation, but expect to be treated with respect & get listening. Problem is NOT with GST, but it is the way it has been implemented.

16) Monthly returns are worst ailment in whole thing. You could have collected taxes monthly and allowed returns to file quarterly. OR in beginning you should have kept quarterly & later on monthly.

17) GSTR3B, GSTR1, GSTR2, GSTR3 all this is criminal waste of time. Whole month we just keep doing this. So much valuable time is wasted, that could have been used for better productive things which would have certainly contributed to growth of nation.

18) We, in Maharashtra, were already filing GSTR3B, GSTR1, GSTR2, GSTR3 all in one package, ( I compliment MVAT to develop such an user friendly return), the data was reconciled at receiving end, and we were getting acknowledgment in 24 hours.

19) How a small trader can survive with increased accounting expenses, return filing expenses, computer & software, internet & it’s connectivity, consistency of power – To make it worse many are even not literate enough to make proper bill – leave aside the complicated compliance.

20) You have dumped responsibility of suppliers’ fair practice also on buyer.

21) You have also dumped responsibility of allocating IGST, CGST & SGST, on tax payer. Your software could have easily done this on processing end from bill data. Why a tax payer has to go through this herculean task? And there after if he made a mistake you don’t even give chance to rectify.

22) Still, there is time. Please, make the necessary changes on war footing if you want to make GST a big success & make the trust we have placed in MR. MODI worthwhile.

23) History is witness – no autocratic policies have succeeded anywhere. People of the country may be evading tax, may be doing scandals, may be doing frauds but still they are God fearing & will follow your rules if you take them in confidence & understand THEIR problems.

24) Last but not least- please wake up. Pain waves are too dangerous.

H A Vakharia, TAX CONSULTANT, MUMBAI

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21 responses to “Open Letter to PM / FM and Team on GST issues”

  1. Punit I Shah says:

    I have done mistake in GST3B for september as SGST & CGST Liability entered different value. The foolish software accepted the mistake & allowed to submit the data of GST 3b. In GST SGST & CGST Liability are same then how the GSTN software accepted mistake and allowed for submission.

  2. Sainath says:

    Very true. Compliance should be reduced.Also, penalty for late filing of Form 3B should be waived. Its just a simple return and penalty is too high.

  3. Jadhav Milan says:

    This time government not go with Business as well as Accountant. If such type of work is continuing then accountants opt only majdoori on daily basis which gives them piece of mind & nice sleep in night. Their should be go for correction in filling of Returns in simple way as like VAT

  4. Som Sachdeva says:

    Very rightly written. We have knocked every authority to get clarification on chargeable IGST on parts of Agricultural Machinery falling under heading
    84329010 & 84329090, but the department claim it is 18% being residuary item, being parts not mentioned against Sr. No. 196 of Schedule II – 12% of notification, whereas the consultants and also the learned publishers like R.K.Jain and also the Economifc Times and others clarify as falling under heading 8432 family of same heading. It is going to be 3 months and we are waiting reply to our written letters/mails and telephonic talks.

  5. Nitin Parmar says:

    Thanks for raising the queries , its horrible for all…
    Penalty and Monthly Return process are too complicated, it should be quarterly base return filing and monthly base Tax payment. Also GST portal should work proper.

  6. PNV GIRI says:

    If the country is to be made prosperous , there should be only one tax rate – like Malaysia and other countries. Through out the nation one tax one return policy is the best and acceptable by all . Till we reach this mark ‘ one nation – one tax , we will face not pain waves but pain tsunami

  7. Raman Khullar says:

    Thanks for raising the problems faced by businessmen very genuine problems

  8. Anurag Dhawan says:

    Agreed to most points Also there is no print out of retuns like we use to get in excise
    No facility to debit in between returns

  9. Kishore says:

    Rightly said ….we the business persons are been treated lije goons …and and while real goons are enjoying

  10. Mani Manickam says:

    Yes. I too committed a mistake in July GSTR 3B return. Instead of entering Input credit in 4 a i entered under ineligible ITC . After confirming i found I had to pay morte tax. But not able to correct it and also not able to file the return for July and Aug 2017.

  11. GRANDPROJECTLLP says:

    Respected Sir/Madam
    what you have given in the above letter and contents of the letter is very good. Our thanks to tax guru. our suggestion are OUR GOAL IS TO KNOW THE IGST, SGST, CGST PORTION , IF YOU PUT ONE FORM LIKE VAT 200 (GST 200) UNDER GST IS SUGGSTIBLE. IN THE SAME FORM, YOU CAN INPUT THE DATA OF IGST, SGST, CGST AT A TIME INSTEAD OF GSTR 1, 2, 3 ETC.,
    ANOHTER IMPORTANT THING IS NO STATE IS GETTING PROBLEM UNDER GST, ONLY ANDHRA PRADESH IS GETTING PROBLEM. IT IS TIME SAVER THERE SHOULD NOT BE GSTR1,2,3 EVERY MONTH.

    IN REGARD TO TRANS 1, THERE IS NO SPECIFIC IN DETAIL FORMAT FOR SERVICE TAX, VAT, EXCISE LIKE WHERE TO INPUT ???

  12. Prakhar Banthiya says:

    Although,i donot agree with all that you have said. But GST has become a pain for Indirect Tax Practitioners.

  13. shinemca says:

    The biggest failure of GST was due to the fact that people at the helm of the affairs have only theoretical knowledge and may not know how to even use Ms-Word or Ms-Excel or even send emails with options such as attaching files, etc. They are advocating drive a car just with theory class
    They have never tested the software whether it is working properly or not. Now the only solution is , we can’t go back , as the author suggested, make the return filing to quarterly and meanwhile GST authorities should ensure that GSTN return filing mechanism working properly or not by demo version of software with tax payers and at the same time very good software expert must be made available to correct the mistakes .

  14. SN aggerwal says:

    Why after deposit of Tax by Net banking , it is credited in cash ledger after 8-12 hours. Do GST departments expects the client to sit for hours to wait for credit and file b return

  15. Vaidyanathan H K says:

    Dear Sir Vakharia
    Excellent presentation for the attention of PM and FM. I wish they should think about the problem of dealers who are also one of the main backbones of nations economy and development. As you correctly said GST Portal is very badly prepared, same should be simplified.

  16. Vijay Malik says:

    India become a tax terror state.
    NO EASE DOING BUSINESS.
    HORROR TASK TO MAKE COMPLIANCE.
    NO PROFESSIONAL WILL BE ABLE TO HELP THE BUSINESS MAN EVEN IF THEY READY TO PAY MORE FEE.

  17. KETAN KOTECHA says:

    Very true. Compliance should be reduced.

  18. Gyati Gupta says:

    Moreover no option for rectification has been provided in Form 3B

  19. Gyati Gupta says:

    Also, penalty for late filing of Form 3B should be waived. Its just a simple return and penalty is too high.

  20. Sarjiwan Gupta says:

    GST and Income tax now a days, have become more dangerous than Blue Whale Games, and even Government is fooling the people on GST

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