Suspension of Form GSTR 2, 3 may cause harm: CAs tell Govt

Source: The Hitavada      Date: 29 Nov 2017 09:38:59


Business Bureau,

Chartered accounts and professionals recently suggested the Union Government to make crucial changes in the Goods and Services Tax so that the newly introduced tax regime could be streamlined at the earliest possible. The chartered accounts and professionals were expressing their views in a panel discussion held here recently during the
‘All Vidarbha GST Conclave’ organised by the Nagpur Branch of the Institute of Chartered Accountants of India (ICAI).

On the occasion, panelists discussed various critical issues with respect to GST law and its compliance. Satish Sarda, Chartered Accountant, while chairing the session, thanked the professionals for giving regular feedback to Government in making the GST easy to comply with. Some of the important points addressed during the discussion were as under: Suspension of Form GSTR 2 and GSTR 3 for time being :-Forms GSTR 2 and GSTR 3 have been suspended up to 31st March 2018. Due to this the very basic feature of GST has been defeated. Now there will not be any matching of bills and corresponding credit.

Dishonest persons may take benefit of this suspended compliance and there may be cases of fictitious bills as was happening in erstwhile VAT regime. Input Tax Credit and Blocked Credits:-Newly registered Assessees (due to crossing of threshold limit of turnover) or assessees opting for voluntary registrations will not be entitled to take credit of input services and capital goods purchased before registration, so they should plan their registration so as not to loose the input tax credit.

Though on purchase of motor vehicle credit will not be available, GST paid on vehicles purchased for transportation of goods will be eligible for Input Tax Credit. Similarly Input tax credit is not available on construction of immovable property, however same can be claimed if construction relates to installation of plant and machinery.

Persons not liable to take registration and compulsory registration:-Persons exclusively dealing in exempted goods need not take registration under GST. However if their aggregate turnover crosses the limit of Rs 20 lakh, it will make them liable for registration. Persons making inter-state supplies of goods, or getting inward supplies of specified services / goods have to take compulsory registration even if their turnover is within Rs 20 lakh.

Place of Supply and Time of Supply of goods / services:-
Whether to charge SGST + CGST or IGST will depend upon place of supply of goods / services. There are different provisions for goods and services in this regard. Even payment received in advance will be liable for GST, however recent council meeting has given relief by not taxing advance received against goods.

CA Satish Sarda chaired the panel discussion while CA Saket Bagdia coordinated the session. CA Shailendra Jain, CA Deepak Agrawal from Akola and CA Mayur Zanwar from Amravati were the panelist. Sandeep Jotwani, Chairman of Nagpur branch; Julfesh Shah, Member PR and CSR Committee, ICAI were prominently present on the occasion.