Why is everyone so worried about GST compliances in India? Goods and Services tax popularly known as GST worldwide was a dream of every Indian, but its implementation would be in such a haphazard manner was least expected by any one. More than 45 days have gone since it became effective in India, still most of the businessmen are unaware of the procedure, law, provisions and regulations related to GST as laid by the government.
Forget about the consultants and professionals even the government officers and finance department are not familiar with more than 60 percent of the provisions of the GST. Every day we come across various misguiding and frivolous explanations by the revenue secretary of India regarding various issues on GST. Government’s official twitter handle and newspaper advertisement also comes with the disclaimer about the accuracy of the answers provided by them.
GST seems to be one of the very poorly drafted laws in India. Some detailed explanatory notes or guidance notes in form of a comprehensive book were expected to be released by the Ministry of Finance at least 2 months before the implementation of GST in India, but apart from some online fliers and some half-hearted seminars no steps have been taken by the government to educate the people of India. Even the basis forms of the GST are not available yet.
GST was expected to remove the burden of various cascading taxes in India and bring down the prices of goods in India, but rather than lowering prices of various commodities, government seems to generate more and more revenue from GST. For example post GST implementation most of the car manufacturer reduced the prices of various car models in India, but immediately government increased the rate of compensation cess on those cars whereby leading to again upward revising of those prices.
A normal businessman who was filing four returns in a year under earlier laws is now expected to file at least 37 returns in a year. Legal compliance cost of indirect taxes which was about ten thousand per year for a small or medium businessman has sharply increased to thirty thousand under GST. Also al little time is left with the businessman and professionals to look into the other routine matters of their businesses. I don’t know why they did not continue with the Quarterly returns with an obligation to pay tax on monthly basis. I am not discussing this matter at length here as I have already written a separate article on the same under title “What’s harm in making GST return as QUARTERLY returns?”
I even started a petition on www-dot-change-dot-org to make all returns under GST as quarterly returns with an obligation to pay tax on monthly basis.
Official common portal of GST which is www.gst.gov.in is not working properly especially the DSC em-signer utility. When DSC were working on all the government sites very effectively, take the example of ROC, Income Tax etc., God knows what was the interest of the government in engaging such an agency whose e-signing module does not work for 29 out of 30 days in a month. They are providing various fancy ideas and steps to correct the errors as if they are expecting the availability of a software engineer in every professional’s office. In case the registered dealer has not updated his telephone number in his aadhaar database or in case he has changed his mobile number, be ready to face problems in filing each and every return on GST portal.
No forms for Cancellation of registration has been provided for the dealers who have filed part-B of registration form while migration. No forms for amendment of registration have been available yet. Problems are numerous but answers are not available.
Festive season has started in India but not for the Indian businessmen and tax consultants, for them a black era has begun which will witness a pile of workload to be done in offices, for the next 2 months all the tax professional will be buried under the heap of returns to filed under various tax laws in India. Be it DVAT Returns, Service Tax Returns, CERA Audit, seven GST returns to be filed September, Tax Audit, Statutory Audit, Income Tax Returns, Filing of TRAN-1 form the list seems never ending. Even a separate article has been written on the same under title “Forget about Tax or Statutory Audit, book your September to welcome GST”
At end, I pray to the almighty GOD to give enough mental strength, physical fitness and trained staff to all the tax professionals across India to handle this work pressure in the months to come.
Author Bio
No body is able to have a grasp of the matter correctly.No forms for Cancellation of registration has been provided for the dealers who have filed part-B of registration form while migration. No forms for amendment of registration have been available yet. Problems are numerous but answers are not available.
Namaste to all.
Its a positive sign that Government had the will to implement GST { Good and Simple Tax }. Congratulations for this. But the way in which it was implemented is not digestible. They did not give their heart to it.
G S T is simply a KHICHDI (Mix )of the previous laws without going into its repercussions. Today the business men as well as the practitioners etc., are left clueless on many many questions arising. Most of the seminars seems to be to promote the GST.
I really hope the Government gives a thought and makes the Goods & Service Tax as our Prime Minister says Good & Simple Tax and help all to be at ease of doing business and generate joy n happiness .
I am sure that in whole country there are experts who can help the Government to make the GST law simple, short and easy. Why not the Government begin this exercise in right earnest rather than waiting. Change is the order of life, change for the better of all.
Thank you all.
Respected professionals pl look at the positive side. GST helps us to:
1. Have complete faith in God when you navigate the GSTN portal since God alone can help.
2.We have one law in the place of 17 by bringing in all the provisions of 17 laws into one amalgam
3.See diversity in unity. I have to register under GST if I have to do any business with neighbouring state within India even for Re1/-.
4.Constitutional fathers may be fallible as they have amendments provision for Constitution of India but Dealers are unfallible (Govt thinks so and have so much faith) that none of the GSTRs can be amended.
Now, in the above light do you want to change your opinion?
Respected professionals pl look at the positive side. GST helps us to:
1. Have complete faith in God when you navigate the GSTN portal since God alone can help.
2.We have one law in the place of 17 by bringing in all the provisions of 17 laws into one amalgam
3.See diversity in unity. I have to register under GST if I have to do any business with neighbouring state within India even for Re1/-.
4.Constitutional fathers may be fallible as they have amendments provision for Constitution of India but Dealers are unfallible (Govt thinks so and have so much faith) that none of the GSTRs can be amended.
Now, in the above light do you want to change your opinion?
In spite of repeated request from the citizens of this country, it looks like the govt is totally ignoring the sentiments of citizens. The present govt came to power with the promise of easing the difficulties of doing business but complicated the system and forcing the people not to take a break in making the returns monthly even for a smallest tax payer. Hope the govt listens
AT LEAST PROVIDE LINK FOR UR PETTITION
KINDLY EXTEND THE TIME FOR TAX AUDIT
C A K C AGARWAL
People at large thought they are going to get relieved from central excise and VAT and other taxes and everyone eagerly welcomed GST. But I do not understand why enough time was not given for the taxmen, consultant and businesses before making it live. There are many incomplete areas which are still under process. What author has told is hundred percent true I hope everyone will have clarity by end of this financial year. But it is only a hope which depends on how fast GST machinery is going to resolve and provide clear guidance to all who are concerned and who are part of this new legislation.
I totally agree with you. So many professionals already said, it impossible to implement without knowing… Govt. not care about professional recommendation.
There is no doubt that GST law is very poorly drafted and implemented. The scope for extended and further extended legislation make it very clear that the lawmakers of this country are either not at all competent to do their job or are not at all interested in doing it. Notification and another notification to amend the earlier notifications…. so goes the story. No body is able to have a grasp of the matter correctly.
Who is scared of publishing the email. let us come in the open and open up the channel of dialogue and discussion for the betterment of this nation.
The professionals should rise up to the occasion and guide the nation. You are the privileged lot, not the politicians. Please stand up and lead the nation.
Very right. This government has implemented GST in “dirtiest” possible way. I don’t know why people of this country want to endure all this. Many times I thought to give up practice. I will at least make sure to vote a worst enemy against this government in next election.
Very Good & factual article. Government never think about the accounting / taxation related staff, in respect to day-wise time bound work load on them, their mental and physical health etc.. For keeping the cost minimize, business entities (owner), also pressuring to complete the task with minimum man power. Hope that, in the due Course of time Govt. will see in this angle also, but for that, the articles / opinions like your article needs to be reach to the Govt. – Regards,