Respected All Opposite parties in India,

Through your platform, I would like to bring to kind attention of Hon’ble Prime Minister/Finance Minister, that implementation of GST which was dreamt as earlier as (GOOD AND SIMPLE TAX) is becoming a (GABBER SINGH TAX , as Mr. Rahul Gandhi stated) and it seems GST become a Gabber Singh Tax on day to day basis and small and genuine tax payer becoming weaker.

GST Rule 37 relates to Reversal of input tax credit in the case of non-payment of consideration of Invoice by a registered dealer to the supplier within 180 days period. 

RULE 37 Amendment-

From 1st October 2022, rule amended that “Reversal of Input tax credit in the case of Non Payment of consideration in both case I,e Forward charge as well as Reverse charge

Now as per earlier word “ the amount of value not paid and the amount of input tax credit availed of

“ PROPORTIONATE”  reversal, Now as per amendment the omission of the word “ PROPORTIONATE” from rule 37 (1) is not clarify whether amount paid to the supplier after deducting  the Debit/Credit note. In business such incidence happen regularly and in this case if amount paid to the supplier after deduction of the notes, it does not mean that full invoice value is not paid to his therefore recipient has to reverse full ITC on the portion where he has deducted his amount due to any reason.

Recipient faces lots of problems regarding Input tax credit in fact the ITC is not part of any theft by him or any robbery by him, he purchase the goods and pays the amount along with taxes, he has fully rights on his tax, does not require any interference by Government on his tax.

Considering the problem, that all’s are not loyal, but due to few in loyal, why it is injustice on rest on who is doing compliance properly.

Again injustice on regular compliance holder that if supplier is not file the return or pay the taxes to the government, input tax will be disallowed , what is this ?

Government does not mechanism to find out such defaulter? Why recipients have to burden on that defaulter? Why govt not understanding that due to this businessmen has to involve extra manpower/ experts/software’s etc , where small businessmen can’t afford and this is only one reason that small businessman cannot stood in this competition because he has to consider all above cost on his product where his price goes on higher side. Yes there is directly impact of the above on business and this has to be considered by the government, They have to promote small businessman, they have to pay attention that they are not doing injustice while any policy implement

My humble request to Govt that they need to consider once again regarding this and give relief to genuine tax payer

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February 2024