Certain intricacies and the problems that the - " GOBBLING - WOBBLING - GST ”, not the Ugly Duckling faces and the expertise needed to wipe it :: " Mai Teray Chhehray Se Nazar Hatah Loo Kaisae "

Pic :: The " GOBBLE"  and Mr WOBBLE " of " GST "  , " NOT " the " UGLY - DUCKLING "  

Certain intricacies ans the problems that the “ GST ” faces and the expertise needed to wipe it :: " Mai Teray Chhehray Se Nazar Hatah Loo Kaisae " 

This is again one of my write up for and over the GST and though NOT s student who is a TAX EXPERT and a TAX SAVVY on the norms of the Taxes and it’s sytem of filing at India, this article espcecially is written for the Government of India to ponder over the issues hitting and scratching the GST and to make it TAX PAYERS friendly so that they find it a soothe to fill and pay the GST in all it’s measures and in it’s best form.

I shall make my studies and my write ups here , down below but I would once again request the Government of India to pay a solid heed to all my write ups on the GST in this blog page of mine and I’m doing it for TWO purpose-:

1). To make the teething problems that the nation is facing even after the implementation of the GST which has seen THREE years of age as of late and now for the union Government to complete CORRECT it  .

2). To help the Government of India to collect as much as 100% revenue by the correct implementation of the GST in it’s best and full manner .Because of the GST the petty small and the mini business houses are either finding it too hard to fill the GST correctly without any hindrances or are swithing away and dwindling from their business. This needs to be corrected.

These are my write up and the means for the same-::

 The GST which was implemented on July 1^st 2017 has seen it’s THREE years of it’s birthday and it is that it is as of now is THRE years of age.This is the time that a three years of age, a child is send to the BABY CLASSES in the school to have a first hand experience of the class rooms and the studies which only includes RHYMES and the kind of  easy writings that are taught to the child which mainly composes of the letters A, B, C, D ….. and the riddles hich are taught to them. This is where the first adaptaion of the system of going to the scholl, meeting the teachers, making the friends at the scholl outside the home and a penchant for the books and studies starts developing in the child.Similising that, this is the time for the Union Government of India to  make the GST, a BRAIN-CHILD of so many an Economist at India and the Union Government to send the GST to the SCHOOLS for correction and real  knowledge gaining sense to make it adapt to move in a linear fashion  for adopting  and adapting itself  to the further studies at the school so that it moves up to make a good career for itself by finally studying the subject which can help him to make a good carrer for itself. The PARENTS , ie , the Union Government of India has to now RISE up as a PARENTS to see that the child ie the GST is groomed and shaped properly to make a grand career for itself.

GST:: Has it been laid out efficiently for an efficient RETURNS

The post-GST era  after it’s careful implementation , has so far witnessed exporter  going in for a numerous strikes,  there and they have been error and mismatch in returns filed as well as the World Bank calling GST a very complex Taxation system. But, several months ago, on July 1st, 2017, India as a nation had taken a giant leap towards a new order in its taxation History. GST was touted as India’s second tryst with destiny.

However, more than 40  months as of now from the date of it’s implementation ,  down the line and after multiple policy updates, it seems that not everything has unfolded as planned.  It could be envisaged that there was a possibility that the Government of the day afyter it’s implementation was waiting to see the results atleast after it’s implementation say for a period of three years and then take the necessary steps to see to it that the anamolies are taken care of, and the correct remedial measures are implanted for the GST to take the final shape and run on the track successfully. This was, however, a possibility and the Government was prepared to incur short-term losses in exchange for large future gains. GST in India not only boasts one of the highest tax rates but also consists of the largest number of tax slabs. Add to this the growing compliance burdens, technical as well as compliance issues.

India :: Highest Standard “ GST ” rates and the “ WORST ” in the entire Asia.

 This country always ever it’s inception has always had a standard problem which never was a linear one when it boiled down to the system of payment of taxes and even after the passage of it’s 73 years it still stands and hinges on the same thereby making it unseemingly impossible for the tax payers to make their heart fully inclined to pay any knd of the taxes with an open mind and heart.

Among Asian countries, India has the highest standard GST rate. On the planet, it is second only to Chile. The non-zero rated products ( 0, 0.1, 0.25, 1, 1.5, 3, 5, 7.5, 12, 18 and 28 percent) combined with the remaining zero-rated products and the 3 percent GST rated Gold are a sharp deviation from the one Nation one GST Tax dream. Petroleum products, power, and real estate are still outside the GST ambit.

 This is an observation that I have made by asking so many a business houses that ranges from a small petty shopkeeper selling the provisional items to a house that deals with selling the ornamental items and they have all voiced the amen and the same  view. It is too much for them to bear the anamolies , ie the anamolic pursuing problems ,  which appears to be very miniculistic and mini in nature but are more hounding than a HOUND – DOG as they say.

In this blog, we try to throw light on the issues that currently plague the newly levied GST taxation system in India as well as the taxpayer’s grievances.

Technical GST Issues for Indian Taxpayers :: The Finance Ministry OUGHT to “ ACT ”

Goods and services tax is currently going under tremendous pressure to go through some of the burnings and solution-seeking problems of the three  year-old implemented indirect tax regime. The finance ministry, as well as the GST council, needs to take care of the GST return filing issues and forms related consequences that have to be faced by the taxpayers alike.

Pics :: Technical Issues For The Indian Tax payers 

Let us discuss and find those priority topics of GST on which the GST council and the finance ministry must work immediately:

September Return Due Dates

It might be wrong to the taxpayers as they cannot claim the ITC before matching the invoice, for the date being shortened of October 20th. Also, the credit of ITC claimed or unclaimed is to be claimed or reversed according to the filing dates, so the dates must be extended.

Credit Reversal

The credit claimed on the purchases in which the payment has not been given to the suppliers within the 180 days must be reversed. And to keep a note of these things may indulge an extra burden on the organization. This is one of the most important area that the Finance Minister, and her team of experts neeed to take the care and the cognizance in a pursuing manner.

GSTR 2A Availability

As the annual GSTR 2A can’t be downloaded and has to be viewed monthly, this has created difficulties to match the returns with the books of accounts with 2A returns. Comply of Rule 36(4) on a mandatory basis also creates now a problem. What is this rule ie the Rule 36(4) is NOT known to me but hereby I write it down because I have noted it after talking to a Gold Ornament selling shop here at Bangalore and at Varanasi the constituency of the Prime Minsiter and have jotted it over here.

Agricultural Commission Agent & Joint Development Agreement Agreement Issues

. This is one areana which the REAL ESTATE in particular are facing a serious problem for themselves , first to comply with the GST and then to assess it properly for  making the payments to th Government for paying the taxes , that they ought to be, to the Government. The tax liability has to be paid on the commission according to the taxable goods but when the goods are rated NIL and the commission is not taxable therefore making it an issue for builders and landlord taxation liability.

GSTR 3B Issues

Under this return type, there is no modification or amendment facility available and in case the changes are to be made then there is a lengthy one month period time for the amendment making it interest liability issue.

GSTR 1 Issues

. Business of India right from the time when it started after Independence are at times made by the CREDIT NOTES and the DEBIT NOTES. To explain, the CREDIT NOTES are issued by the Indian railways to the FOOD CORPORATION OF INDIA at instance , and at immediate basis, to move the food items from one part of the country to the another. Similiarly there are certain DEBIT NOTES that takes place in a business. It is here that the problems that are surfacing and that needs the immediate attention of the UNION GOVERNMENT to pitch themselves in and take the issues to settle it for a bettr business to move forward. It is worthy to note that the credit note/debit note or B2C sales made cannot be modified again in the GSTR 1 making it a serious task while filing.

Issues in TRAN 1 form

There will be issues in the Trans 1 notice in Form 603 as it is now sent by the department to everyone making it troublesome for the real taxpayers. As the notice requires all the previous records to be available making it a tiresome issue for the taxpayer to provide the details again.

Some of the issues that I have mentioned here regarding the CREDIT and the DEBIT notes are very practical and I have been a part of the same while jotting my commentary as I have also transshipped material by Indian Railways through the BCX and the CRT at places at Parlakhamundi and Kesinga  at Orissa while dispatching the “ MYROBALANS ” to Tuticorn at tamil Nadu in 1990. Since I was a part of the real incident and we could face some anamolies during that time and that which still exists now, even after THREE decades since then, the Union Government and the Finanace Minister could better act very fast on the same and can make amends for making the issue simple and better.

Some Other Important GST Issues

I have pertinently and very efficiously always in my write ups and in my articles on the GST, have always been pointing to the small business and the hounding problems that they are facing when it is boiling down to the GST.

Let me ne very FRANK to the Indian Government. Ever since the Independence, about 80% of the indian business always lived on the PETTY-AGRICULTURE and the PETTY-SMALL-TIME-BUSINESS . This use to keep about 80% of the Indian population alive and keep on moving ahead.

Ever since the BIG-SHARKS have put their foot and the MOUTH on the same business for themselves to add to their VALUE-ADDITIONS, these have dwindled and the majority of the Indians both in the fraternity of the business from this sector, and the Indisan popiulus also have started seeing their UNNATURAL-SLOW-DEATH.  This could be termed as the SUDDEN-DEATH for the Indian business community, a terminology which I have taken from HOCKEY where India ruled the roost from 1928 to 1964 and then slowly dying from then on in hockey.

My opinion is SIMPLE ‘ as I believe in the “ KISS ”  and it principle of business and management  that GOVERNS the Indian business. It is (K)eep (I)t (S)imple and (S)traight . The sooner the present Union Government realizes that, the better it is for them to keep the MSME’s to be precise to LIVE and if they live the 80% of the ndian population will live for ever. This is the TIME to do it FAST and ACCURATELY.

Some Pertinent Issues for “ Small Traders ”

GST implies additional operational costs for Small businesses. In a developing country like ours, not all SMEs will be able to afford the cost of computers and accountants required to implement GST (make bills and file tax returns). 28% GST rate on some products like plywood, automobile parts, and electronic items forces potential buyers to opt for unregistered dealers. This again is a huge loss to the Government in it's final tally to get the 100% tax revenue collected from the business and it's community. 

Pics :: Pertinent issues of Small Traders 

It is too difficult to assign MRP to handmade products like local shoes, Banarasi Sarees, etc. Most small artisans are illiterate and therefore unable to write MRP on their products and/or do any paperwork. Dealers are confused about how to rates such products.

Small businesses that have a small turnover and need not pay GST face trust issues. Buyers demand bills from even those sellers who are exempted from GST. Without proof of a certificate of GST exemption, small shop owners find themselves stranded and immobile.

Issues for E-commerce Companies

E-commerce giants like Flipkart, Amazon also have not escaped the aftereffects of GST rollout. TCS has to be collected by the e-commerce companies from the sellers at the time of payment.

The capital blockage will hamper day to day operational costs due to TCS provisions. The GST council has fixed the 1 percent TCS over the deduction made while payment to the sellers.

E-way Bill and Interstate Trade

The E-way bill had the potential to liberate interstate trade from all sorts of obstructions. The excitement could be felt among the slightly nervous business community. But on the day when the Finance Budget 2018 was being introduced to the Lower House, the lethargic GST network turned to be a major spoilsport and February 1 turned out to be a watershed moment for the upbeat government. The inability of the network to handle large volume e-way bill requests was at the forefront of public jokes and disappointment. Immediately e-way bill was rolled back. In the aftermath of the failure, goods carrying vehicles were left stranded and highways enjoyed pin drop silence for a few hours. The crumbling GST network has been in the spotlight from the very beginning and it continues to garner unwanted criticism and public grievances.

The Most Important Homework For The “ GST ” Council

It is not that the Union Governemnt uses it’s INDIVIDUAL head for implementing any programmes as such .They have a team of most influential  heads to ponder over many an siiue and advice the union Government to implement the schemes and the GST too is not an exception. I GUESS NEVER AND NOT.

It is here the Union Government has to issue the notice to the GST council to immediately sit and ponder over the matter to remove all the problems that surfaces when one files the GST and also important is the  problems to ward off to make the filings of the GST very accessible and easy for the tax payers to file it with any complication arising, either in the portal or in the system that they use them to file it. There are over 50% of the business friends who have told me all about this and have asked me to make a REQUEST to the Union Government to  correct this in all measures.

The GST Council need to find permanent scalable solutions rather than interim ones like the GSTR-3B. The sloppy GSTN Network raises serious concerns over the Government’s claim of a digital powered economy.  It is here that the Union Government will have to PULL-THE-EAR of the INFOSYS with utmost WARNING to them to correct everything about the GSNT as the GSTN is managed by Infosys, a premier IT services company. The e-way bill network was managed by the venerated NIC.

The “ GST ” E-Way Bill- A Major Concern for many a companies.

The LOGISTIC and the companies that are into it are really at the receiving end because of the GST-“ E ” WAY BILL

Say Maruti, or a BAJAJ MOTORCYCLE company has to send their cars or the motorcycles from say Gurgaon to Bangalore or from say Pune to  Bangalore.They will have to send it by the fleet. Now the  E-WAY-GST-BILL is hounded by some scathing issues that hampers the movement of thse vehicles and at times they are at standstill completely immobilized at the way or the road thereby putting an pertinent problems for these vehicles to deliver the finished products to the ultimare place at the appropriate time and causing a RAL HARD TIME HEADACHES to the ens use customer denying them the facility to use these finished product at the correct time at some times.

This is one grey area which needs to be taken care of and addressed minutely and accurately without losing any time. The E-WAY-GST-BILL also  plays an ugly role when the goods and the items like the FOODGRAINS etc or the PETROLEUM PRODCTS etc are transshipped from the place of the delivery to the ultimate places of the end “ sue ” and use customer.

The GST E-way bill is a major concern for most of the companies which are regularly into the business of transporting goods and sending material over the locations, the transport company is also trying to figure out how it would deal with the GST E-way bill provisions. As soon the bill expires the transport company or the trucker himself has to generate the GST E-way bill on his own.

The GST Council must have taken all these concerns into strict consideration and ensured easy and simple e-way bill generation procedure which has been effective from April 1, 2018 . The QUICK the Union Government is on the matter, the GREAT BOOM and BOON to the one’s who are plagued and who neeed those or that OXYGEN to survive.

Evaders Bonanza

The consistent policy rollbacks and amendments, powered by the glitchy GSTN Network, have enabled massive tax evasion. The benevolent composition scheme, as well as windows for filing quarterly returns, raise concerns about the intention and execution prowess of the government at the center. The increased pool of registered taxpayers has had little but no impact on Revenue generation. Only 70% of taxpayers file returns regularly. A major headache is, however, the mismatch between initial and final returns filed by taxpayers. There is an estimated mismatch of Rs 34,000 crore tax liabilities reported in GSTR-1 and GSTR-3B. The present GST structure has no mechanism for checking discrepancies found between GST Returns for July-Dec and Final Returns. About 84 % of the taxpayers were unable to correctly report revenue statements. The discrepancies and e-way bill failure demand that the GST Council now needs to take rigorous measures to tackle the menace of tax evasion through under-invoicing.

GST and Fiscal Fractures :: A “ DEATH-TRAP ” for the common man

All discussed about the business community, let me take the plight of the COMMON MAN who always have been the BULL EYE of the Union Government whenever it needs to fire upon and on for scaling it’s failure and preventing it’s skin to keep themselves afloat by using the COMMON MAN to save them by the skin of their teeth for evry failures it does to cover it by using the common man.

The GST revenue shortfall promises large dents in the Centre and states’ fiscal applecart. The Center and State budgets will be pegged down by the gap in Tax revenue.  This will again turn their attention to the common man to save them from the ignominy and then the onus of the tax will fall upon the common man to pay the taxes that would be implied to them by the Government .

The common man will find himself on the receiving end if such a gap in revenue continues. To bring states on the same wavelength and approve GST, the government had offered state compensations to the tune of Rs 60,000 crore for July to March in FY18. In order to stay true to its pre-GST promises, it is estimated the Central Government will have to make payment to the tune of Rs 90,000 crore further in FY19.

Understandably, the Budget 2018 unleashed record taxation of over Rs 90,000 crore in the form of capital gains tax, increase in customs duty, cess and surcharge. The fall in revenue has further made states apprehensive about bringing petroleum products and real estate under the GST ambit.

Adapting to The IT Ecosystem is Hard

Indian economy is majorly driven by small business units i.e SMEs. It will be unfair to expect small-scale business firms to make the transition to an online IT platform and expect no errors in return filing. It is an uphill task for the majority of our working population which has little hands-on experience with IT solutions. The cost of SRP deployment is a major concern for micro-small-medium scale enterprises.

The Confusion – the conclusion –plethora of taxes to “ GOBBLE ” up

For a frictionless and less burdened GST, the government is looking to shore up revenues to the tune of Rs 1 lakh crore per month. It would be interesting to see if the Government still has the courage to take stern measures against tax evaders and other business firms involved in anti-profiteering activities. The GST was projected as India’s second tryst with destiny. However, the financial budget of 2018 has thrown a wide plethora of taxes at the Indians to gobble up. Increased taxation is the only way of generating operational revenues for a complex system like GST in the nonlinear Indian Demographics.

In conclusion, the present GST appears to deliver little promises. The GST rollout it seems was done with very little homework both at operational and technical ends.  Now is the time to sit back, look into the correction and a viable action for adaptation in terms of the correction needed that could be implemented, For the time being, the GST Council needs to pay heed to grow public as well as taxpayer grievances. It must take note of the fact that policy must be designed to reduce the compliance burden on the taxpayers.

Compliance strategies must include compulsory education and assistance programs and risk-based audit programs. It must also run a communications campaign that enlightens the various effects as well as benefits of GST amidst businesses, consumers and important intermediaries.

Challenges CA is Facing Under GST

" THE ENTIRE COMMUNITY IS FACING AND LOOKING FORWARD TO THE UNION GOVERNMNENT TO ACT UPON AND MAKE THE " GST "  FILINGS AND IT'S PROCEDURES SIMPLE SO THAT THE JOB BECOMES SIMPLE FOR EVERYBODY. EVERY SECTOR IN A WAY OR TWO ARE FACING SOME CONCERNS AND THE  WORLD OF CHARTERED ACCOUNTANTS TOO   ARE NOT LEFT BEHIND " . 

The roll-out of the Goods and Services Tax Act (GST) in India is followed by the beginning of online GST Registration and e-filing of GST Return filing. Among regular amendments & digitalization of tax-related tasks, Chartered Accountants are constantly coming across various challenges that vary from using the online GST mechanism to the alignment of their books & records to meet the new GST requirements. This led to the investment of increased efforts and time by CA due to incorporation of details such as customer’s address & GST Number, HSN Code (Harmonized System of Nomenclature) for products & SAC Code (Services Accounting Code) for services in the invoices and issuance of documents such as a Debit note, Credit note, Receipt Vouchers, Bill of Supply & E-Way Bill under the various circumstance.

The administrative work of CA has also increased due to mandatorily filing of several returns, based on the constitution & the sales turnover of the business. Besides a CA has to manually furnish details & enter all invoices & bills into different tools or company’s software or spreadsheet to adhere to the GST mechanism, followed by the creation of GST reports, cross-verification of company’s purchases, sales & ITC details, correction of mismatches and finally upload of information to Government’s GST portal. Under GST, a CA has to ensure the reconciliation of data between the seller and his supplier to claim full ITC and avert unnecessary payment of taxes. Reconciliation is a tiresome & a time-consuming job that has to be executed on a monthly or quarterly basis, depending on the company’s turnover.

 Well , that is it

Regards and Thanks

Pics

Shyamal Bhattacharjee 

Mr Shyamal Bhattacharjee, the author was born at West Chirimiri Colliery at District Surguja, Chattisgarh on July 6th 1959 He received his early education at Carmel Convent School Bishrampur and later at Christ Church Boys' Higher Secondary School at Jabalpur. He later joined Hislop College at Nagpur and completed his graduation in Science and he also added a degree in    B A thereafter. He joined the HITAVADA, a leading dailies of Central India at Nagpur as a      Sub-Editor ( Sports ) but gave up to complete his MBA in 1984 He thereafter added a Diploma In Export Management. He has authored THREE books namely Notable Quotes and Noble Thought published by Pustak Mahal in 2001 Indian Cricket : Faces That Changed It  published by Manas Publications in 2009 and Essential Of Office Management published by NBCA, Kolkatta  in 2012. He has a experience of about 35 years in Marketing .

Signature Of Shyamal Bhattacharjee

 

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