PART-II Open Letter to the Honourable Prime Minster of India My Experience with GSTN-\u00a0 Workable suggestion to Make GSTN a success
By: – CA.Mohammed Lakkadsha
Goods and Services Tax – GST
Dated:- 9-9-2017<\/p>\n
PART-II
\nOpen Letter to the Honourable Prime Minster of India
\nMy Experience with GSTN- Workable suggestion to Make GSTN a success
\nAs an addendum to my earlier open letter to Honorable Prime Minister of India, I thought to pen down suggestion based on my experiences; input from various professional colleagues and taxpayers -how the GSTN network should work to really term it as user friendly. The successful implementation of GST Law heavily depends on technology, as government plans to make it front end and done way with all kinds of manual intervention.
\nBackdrop:
\nIt is worthwhile to note that GSTN system has been designed by one of the most valued software company of India Infosys Limited (Company is also managing MCA and other Government portal) which is going to b<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n can be utilized at least to plug the connectivity issues. The Income Tax TDS system TRACES is finest example, which has overcome such bottleneck over the period and matured enough to be replicated for new tax system like GST. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n initiated and defaults and mismatch can be generated, to be correct within another month time by way of correction return before finalizing the liability of taxpayer and converting it to demand or refund to be carried forward in next quarter returns. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n HSN list so that taxpayer can provide HSN code in Invoices, also it will help to decide correct Tax rate for the goods. Moreover in view of vide acceptance of smart phones, preferably mobile applications should be provided for locating correct HSN code and corresponding tax rate applicable. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ally (with reasonable size) or locally with registration cell set up at district level offices. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Provide Trade parlance HSN code list. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" PART-II Open Letter to the Honourable Prime Minster of India My Experience with GSTN-\u00a0 Workable suggestion to Make GSTN a successBy: – CA.Mohammed LakkadshaGoods and Services Tax – GSTDated:- 9-9-2017 PART-II Open Letter to the Honourable Prime Minster of India My Experience with GSTN- Workable suggestion to Make GSTN a success As an addendum to … Continue reading “PART-II Open Letter to the Honourable Prime Minster of India My Experience with GSTN-\u00a0 Workable suggestion to Make GSTN a success”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-7666","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7666"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7666\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nReal bottleneck is Numbers & time line of Filing:
\nIn view of large numbers of user which is estimated at 70-80 lacs which will be soon exceed the 8-digit figure, the present online system will not work as return filing process is time bound and it is most likely that 80% of user will log in last 2-3 days to file their return, ultimately queuing theory will fail as µ > λ (Service Time is Greater than Arrival Rate).
\nWHAT IS THE SOLUTIONS TO LARGER PROBLEM:
\n * A Robust Offline Utility – The Solution to present day situation can be only providing fast & robust offline utility with all validation checks; sensitive help and troubleshooting for generating Offline Return file to be uploaded on GSTN portal.
\n * Replacement of existing un-workable Three <\/p>\n
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\n * Reduce return Frequency – The most important and burning issue amongst all the taxpayer is monthly frequency of compliance. Every taxpayer must go through same process every month which requires lot of resources in terms of Time & money, which every taxpayer cannot afford.
\n * One Time longer frequency to adjust to new system – Beside Initially when every taxpayer and consultant are struggling to understand new Law, concepts and reporting standards, the frequency should be of six months to nine months for the current financial year 2017-18 and which can be subsequently settled down to ideal period of quarter.
\n * Monthly Summary return to assure Tax collection – The government concern for revenue collection can be taken care by impo<\/p>\n
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\n * Submission of other Forms – Other necessary Submission need to be made available online immediately and alternatively through manual system initially which can be done away once online system gets smooth and workable. The issue under Composition scheme (Opt-In\/ Opt-Out); registration cancellations; need to be sorted out immediately.
\n * Ensure speedy resolution at Local Department Level – The local department offices should be armed with interface for speedy disposal of issue arising, which cannot be resolved under available system.
\n * Making law Simpler to reduce the system complexity- The taxability under reverse charge being a totally new to business specially in SME sectors is making un-wo<\/p>\n
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\n * KYC Check of Registered Dealer – The GSTN portal should provide updated details of Dealers so that proper status (Regular\/Composition) can be known before entering into transaction.
\n * Verification (EVC \/DSC) – Presently the system requires OTP for various services, there is no provision to change the contact details (email ID and or Mobile number) given at the time of registration, which need to be implemented with proper security check before change the contact details. The verification with DSC option should be made workable in line with ITD site.
\n * Effective Redressal System – A Well-equipped redressal system should be established in form of online portal manned with resourceful and skilled staff to resolve all sorts of issue of taxpayers. The queries raised to GSTN should be replied in specified time as per Service Level Agreements (SLAs). Where such queries are not replied, the <\/p>\n
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\n * Tax Payment under single common head to be adjusted under to different heads of Tax.
\n * System akin to existing well tested system is desirable as they are user friendly and already adapted by the professional.
\n * Provide redressal portal for authoritative and timely solution
\n * Providing Taxpayer, a reasonable time preferably by the end of this fiscal year to adapt to new law and system and make them ready for proper compliances.
\nThe government should also think on lines of consolidating compliances under various fiscal law for providing a common portal for submission of business information be it be Financial statement, Audit report or trade specific compliances. This will greatly help in reducing compliance time, duplication of data and interoperability of data.
\nGovernment need to be responsive and consultative to taxpayer demands, then only user friendly robust GSTN System can be implemented in real terms or it will remain like anot<\/p>\n
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