GST objectives are good but method is hard: ICAI Panel Chief

Source: The Hitavada      Date: 17 Jun 2017 10:45:23


 

Business Bureau,

IN 1976, the Jha Committee was formed by the Union Government to study the relevance of GST, which submitted its report to the Government in 1978, which stated that GST was must, informed CA Madhukar Hiregange, Chairman of Indirect Tax Committee of ICAI. He was speaking to the media on the sidelines of the two-day Regional GST Conclave organised by the Nagpur Branch of the WIRC of ICAI on Friday.


Also present at the conference were CA Vishnu Kumar Agrawal, Chairman of WIRC, CA Sarvesh Joshi, Vice-Chairman, WIRC, CA Balkishan Agrawal, Chairman, WICASA, CA Sandeep Jotwani, Chairman, Nagpur Branch of ICAI, CA Suren Duragkar, Secretary, Nagpur Branch of ICAI, CA Abhijeet Kelkar, Member, WIRCA.


Hiregange explained: “Why GST, as 40 per cent of the trading in the country is going without proper bills. These persons are also utilising the country’s resources free of cost. Grey economy or parallel economy is flourishing in the country. Tax administrators are also getting corrupt. The economy is getting expensive for those who are following the law and easy for those who are not following law.”


He said that the GST was the amalgamation of 40 taxes. The exemption limit of GST was Rs 20 lakh per annum.
“So the GST will be beneficial for traders dealing with customers, i.e. Business to Customers (B to C). While dealing with B to B, i.e. Business to Business below Rs 20 lakh per annum, will be closed. Those having an annual business below Rs 20 lakh will not be able to supply to any office. Even no business will deal with unregistered business.”


He also noted that the bad practice of composition tax payment would be stopped. Hiregange, who has penned 16 books on indirect taxes, also foresighted that in the beginning it would be a huge problem of electronic filing and keeping of records for the SMEs. “Even Matching Contact will also create a great mess in the starting as all associated people have to upload supply on the 10th of every month. The objectives are very good but the method is hard,” he said.


He suggested that the Government must stop matching for business below Rs 1 crore and it must be done only once in a year. “It may create problem for more than 70 lakh traders in the country,” Hiregange said. He also lamented that the Act was to be enforced from July 1 but till date transition rules were not ready.


“The GST Law has not been passed. The 83 exemptions have not cleared yet,” he said.
But he was also optimistic that like the Company Act, when it was enforced there was opposition but with time, necessary corrections were made and it was now accepted by all.


CA Vishnu Agrawal, Chairman, WIRC said: “WIRC has taken the mission of spreading awareness of GST to the masses. Out of the 90,000 CAs in the Western Region, the institute has trained 45,000 CAs and will train all the remaining by July 1. The institute is regularly holding training programmes with various trade associations. A GST clinic has been opened at all the branches of WIRC of ICAI, where one CA is regularly guiding the traders on GST. The country will progress with GST. It’s an achievement for the country.”
He also informed that July 1, which was celebrated as the CA Day and launching of GST, on the same day by the Prime Minister, Narendra Modi, would be launching a new course for the CA students at New Delhi.


The guests were introduced by CA Suren Durugkar. CA Sandeep Jotwani, Chairman of the Nagpur Branch assured that the Nagpur Branch would work to satisfy the eagerness of the people on GST.


CA Abhijeet Kelkar noted that now as the date of launching of GST was coming closer, interest of the people was also increasing. The two-day GST Conclave had a registration of 1,021 CAs, an all-time high.