The new GST (Goods and Services Tax) law is proposed to be implemented nationwide with effect from July 1, 2017.
There are some ground realities which should be taken into account while implementing in a short period of time, the new law countrywide, replacing Value Added Tax, Excise, Service Tax, etc. and making golden handshake with VAT of different States of India and Central Excise, Service Tax and some other notified taxes, presently in operation.
In GST Law, the dealers have to remain dependant on the internet services and on GST portal. Due to full computerized working, there will be need of computers, printers, scanners, etc. for which the small traders will have to arrange the capital as spaces for keeping and operating the systems.
Payments upto Rs. 10000 in cash can be deposited in banks and above that e-payments have to be made for depositing the tax.
There was closure of GST portal for full of the May month and, now, it has opened for GST enrollment from June 1 to June 15. VAT TIN as well as Central Excise, Service Tax, etc. registration numbers have been cancelled and also provisional ID and passwords have also been cancelled in many cases of dealers who could not migrate into GST upto 30 April, 2017.
There are problems of e-verification while finalising the GST enrollment and also countrywide there are mismatch in many cases in Aadhaar and PAN data. Therefore, OTP is not reaching at the mobile numbers mentioned in the registration forms. The alternate way of e-verification prescribed i.e., Digital Signature Certificate(DSC) is taking time and money. GST commons portal is not working efficiently due to heavy pressure on the site and many a times it closes the working. It has been seen that in respect of e-filing sites of income tax and service tax there occurs problems of working of server at the time of filing of returns and due to that due dates are enhanced looking to the practical problems on the order of the courts or by self by concerned departments.
As, there is lot of pressure of enrollments presently and whole country is trying to be linked by way of single tax system, GST, there shall be operational problems for which electronic systems have to be made stronger before the launch of GST.
Some of the States are also not well equipped and finding it difficult to cooperate in GST regime from 01.07.2017.
Tax payers are trying to understand the formalities, forms, etc.
Keeping in view the above some problems, which may be more evolved in combining the Central Excise, Service Tax, VAT, Entertainment Tax, etc. and implementing the one law, GST, in hurry may proved to be difficult for taxpayers as well as for the Government.
In most of the countries the ruling parties which implemented the GST, lost the elections of the next general elections.
The taxing system should be flexible and according to the ground realities of India as our country is not so much advanced alike America. Here, the decision of the Hon’ble Supreme Court given on 9.06.2017 in Binoy Visam vs. UOI, in respect of linking of Aadhaar cards with PANs is also notable.
The proposed GST law may be made operational from 1.04.2018, upto then problems of many types will be solved and the new law will find easy in operation from the start of the new full Financial Year.