Goods and Services Tax – GST – Dated:- 29-11-2017 – Society for Tax Analysis and Research (STAR) has made the following representation before Sh. Dheeraj Rastogi ji, Commissioner – GST Council, Member – High Powered Committee on Return filing: At the outset we humbly thank the government for this wonderful initiative wherein this esteemed committee has been formed to consider the problems faced by the taxpayers in filing of their Goods and Services Tax ( GST ) Returns. GST is believed to be a good and simple tax. A system was for the first time casted by the Government (GST Network( GSTN )) to capture billions of transactions that take place in our economy and that too on a monthly basis. However, the professionals and the tax payers have faced multiple problems as the GSTN system was struggling with its own challenges of handling such huge volume of transactions. We are hopeful that with this esteemed Committee in place, the taxpayers and professionals will find respite from their pr
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seen dip in certain month may have Nil return in certain months. In such cases also, the requirement to file all 3 returns and 3B is not warranted. In cases where return is Nil, a simple option of nil return if selected should automatically fill nil data for all parts and allow filing in one go. 3. Invoice wise reporting Invoice wise reporting of B2B transactions has increased the work manifold in case of many businesses. While the same is of no use to any government, as the motive has always been matching of data, such huge amount of detail has caused problems in terms of data submissions and filing. Invoice wise data submission requires precise accuracy in filling details in prescribed format and also increase the file size of data being uploaded to GSTN. This results is repeated failure in uploading large size filed and also limits the capacity of GSTN to handle more data. In case of B2B transactions, partywise details of supply and tax along with place of supply be taken and option
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g of his previous return. Blockage of subsequent return might increase non compliance to a level where even a genuine taxpayer might find it impossible to cope up with the filing of all returns together if the resolution of his problem takes some months. 5. Different Submission and filing requirements: For a taxpayer, till the return is not filed, there is no acceptance of the data he has put into the GSTN. More particularly, the law also requires filing of return without any legal authority given to submission of data which is not signed such data. There should be no blockage of data submitted till the return is filed. The taxpayer should be able to amend all details till he file the return after payment of tax. In case of any wrong application of tax before filing of return, an option be given to reverse such application of tax or revise the data submitted as before filing of return with valid signature, no such submission is valid and is of legal consequence. 6. Submission of HSN su
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while collating the information, system itself does not allow such functionalty. Payment of tax should be 8. Cross transfer of tax amongst CGST, SGST and IGST is not allowed There have been instances where the taxpayer or his personnel, in sheer ignorance or by fault, pays tax under a different head than required for eg. CGST in place of SGST. The cash while it is lying with government treasury, gets blocked and cannot be used for payment of tax. Moreso, taxpayers with limited resources find it impossible to deposit tax again. Thus, while the money of the taxpayer is An option of automatic refund of money lying in cash account of the taxpayer be given si that any balance lying in cash ledger be credited back to taxpayer by next working day. This requires no checking or scrutiny on part of proper officer as such money has not been offered or applied as tax by the taxpayer and thus, its his own money which he should be able to withdraw and which should be credited in the bank account giv
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business compulsion. Return filing for all new registrations be allowed from July and this mistake be ignored till taxbase is settled in GST. This would increase compliance and shall reimpose faith of small taxpayers in the system 11. Safety of taxpayer s Input Tax Credit ( ITC ) in absence of GSTR 2 Section 16 allows credit of ITC to recipient only when the same is paid by the supplier. However, in case where GSTR 2 is not being filed, the reconciliation system is not available to the recipient to verify his ITC. By the time such system is in place, there are chances that such ingenuine taxpayers might elope with taxes paid to them by genuine taxpayers. This gains important when the rate of tax are in the bracket of 12%, 18% and 28% and when cess is also paid. Strong monitoring is required of all fly by night operators who have taken registration to defraud genuine tax payers and who shall not be found once the system shall be working in another four months. High value transactions b
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plier will be found incorrect. Only PAN details of such persons be given and in absence of PAN, name and address of such persons should be considered as proper compliance. 13. Differences in decimals in invoice and tax There are instances where the detail of invoice value and tax as filed in GSTR 1 by the taxpayer is in decimals while the recipient reflects the same in nearest rupee. The same results in a mismatch more particularly in a voluminous data. The identification of such issues requires intelligent IT softwares which are costly for the taxpayer. Auto adjustment / rounding off of invoice value or tax to nearest lower rupee value if the claim of the recipient is lower than the supplier detail as recipient has not filled the value in paise in tax. 14. Simultaneous filing of all returns The spread over 20 days for filing of returns – GSTR 1, 2 and 3 has diverted attention of taxpayer from their business to compliance. The filing of three parts of the return is seen as three return
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g another registration and then raising of invoice on ISD post payment of tax etc. which is more of a stop gap arrangement rather than proper solution on part of taxpayers. Option of such payment under reverse charge and compliance thereof be given as part of GSTR 6 since it is distributing credit to respective units and such liability of payment of tax cannot be distributed under any circumstance to different units. We thank you for this opportunity to present our representation on behalf of all members of Society for Tax Analysis and Research( STAR ). Our Society is a not for profit Society which aims to disseminate proper information of tax to masses and to act as a catalyst between government and taxpayers and other stakeholders in bringing an efficient, transparent and corruption free nation. We trust our suggestions would find space in your consideration and report. Presentation prepared by: Society for Tax Analysis and Research (STAR) (CA Man Mohan Gupta) (Suresh Aggarwal, Advoc
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