Problems faced by assessees in filing of GST Returns – Presentation as submitted by the Society for Tax Analysis and Research (STAR)
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:
\nAt 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 a<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n n the law. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ment looses on the genuine tax payments. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n g to pay estimated tax to avoid interest liability, such payment is not possible. Thereby, even when the taxpayer wants to discharge his tax liability while collating the information, system itself does not allow such functionalty. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n valid once they had applied for registration. While in many cases the registration took more than 3 days and taxpayer was to undertake transaction due to different business compulsion. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n h transaction in return as the column requires GSTIN of person responsible to pay tax. Such supply can also not be called an exempt supply, else the declaration of the supplier will be found incorrect. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ax under reverse charge and distribution of such paid tax to different units. Different methods are being practised across country to counter this problem like raising invoices, obtaining 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Problems faced by assessees in filing of GST Returns – Presentation as submitted by the Society for Tax Analysis and Research (STAR) GSTDated:- 29-11-2017Society 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 … Continue reading “Problems faced by assessees in filing of GST Returns – Presentation as submitted by the Society for Tax Analysis and Research (STAR)”<\/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-9208","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9208","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=9208"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9208\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n2.
\nNil returns also need to complete the entire process
\nCertain small assesses who have seasonal business or have 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.
\nIn 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.
\n3.
\nInvoice wise reporting
\nInvoice 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<\/p>\n
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\nThe limitation of subsequent return be removed in case taxpayer gives a valid reason for non filing 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.
\n5.
\nDifferent 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.
\nThere 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 d<\/p>\n
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\nPayment of tax should be
\n8.
\nCross transfer of tax amongst CGST, SGST and IGST is not allowed
\nThere 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
\nAn 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 of<\/p>\n
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\nReturn 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
\n11.
\nSafety of taxpayer's Input Tax Credit (“ITC”) in absence of GSTR 2
\nSection 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.
\nStrong monitoring is required of all fly by night operators<\/p>\n
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\nOnly PAN details of such persons be given and in absence of PAN, name and address of such persons should be considered as proper compliance.
\n13.
\nDifferences in decimals in invoice and tax
\nThere 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.
\nAuto 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.
\n14.
\nSimultaneous filing of all returns
\nThe spread over <\/p>\n
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\nOption 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.
\nWe 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. W<\/p>\n
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