Nagpur BJP GST Cell’s suggestions for smooth compliance of GST

Source: The Hitavada      Date: 12 Sep 2017 10:30:24


Business Bureau,

CA SATISH Sarda, Convenor of Nagpur BJP GST Cell accompanied by CA Ashish B. Mukim, President of BJP Economic and CA Cell Nagpur and CA Punit Badoniya submitted a memorandum to Nitin Gadkari, Union Minister for Road Transport, Highways and Shipping, River Development and Ganga Rejuvenation giving him suggestions for the smooth compliance of GST.

The suggestions are as follows. Reverse Charge Mechanism (RCM): Reverse Charge Mechanism in GST should be removed. It is the biggest confusing and problematic issue in GST. Small business owners are suffering huge loss due to this provision. Compliance part has also increased due to this. Frequency of returns: For small businesses quarterly return system should be allowed. It is not possible for the small businesses to update their accounts on monthly basis as they do not have the necessary manpower, infrastructure and professional help.

No relaxations in compliances fro small suppliers: Small traders/service providers are finding it extremely difficult in complying with the tedious returns. There should be SARAL forms for small businessmen. Quantity to be fed in returns: It is next to impossible to feed item wise/ invoice wise quantity details while filing returns. In many businesses there are thousands of items making things very difficult for small businesses to comply. Revision of forms not permitted: To err is human. And this being a new tax totally electronic. Mistakes are bound to happen.

Payment modes: Payment by cheques will be accepted for an amount below Rs 10,000 only. For bigger amount payment will have to be made through net banking or NEFT/RTGS. Request is being made to increasing the limit of cheque payment to at least Rs 50,000. Infrastructure: Infrastructure required for the smooth compliance of GST is not ready. Software is highly inefficient in handling such a massive exercise. Time and again Government is deferring the filing dates as the infrastructure is not capable enough of handling such bulk transactions.

Lakhs of assesses and professionals are wasting their time and energy in filing the returns. In rural areas their are additional problems of Internet and electricity. Classification: Government has totally messed up with product/services classification. It is very difficult to search the applicable rate for a particular product. Classification has been done in highly detailed way. Actually it should have been done in a broad category wise. Like textile, iron and steel, medicines, electrical fittings etc.

Cancellation of unwanted registrations: Many assessees who are not falling within the ambit of GST due to their turnover below threshold for registration have been migrated due to legal mandate. In these cases, since they are not required to be under GST regime and wish to opt out, clarification on when the surrender form will be released for e-filing and clarity on whether they are required to file GSTR -3B ‘Nil’ return. Amendment in registration: Most of the assesses who wish to effect amendments to their registration are unable to do so due to technical glitch in GSTN.

Amendment window is still not fully operational. Aggregate turnover criteria for registration and Composition Scheme: As per provisions, a person will have to take registration if his aggregate turnover crosses Rs 20 lakh. Aggregate turnover includes turnover of exempted supplies also. Due to this even a doctor, educational institution having minor taxable turnover will have to take registration. Even interest income is to be considered in aggregate turnover.

Even a doctor selling his old car will have to take registration. Example: If the interest income is Rs 15,00,000 and the rent income is Rs 6,00,000, then the person will have to take GST registration. Clarification through FAQs, handbooks and GoI Twitter handle: Most of the stakeholders are dependent on sectoral FAQs, handbooks and GoI Twitter for query resolution.

It has been observed that contradictory clarifications coming out GoI Twitter handle on the same issue. Request is being made to issue a clarification on the authenticity of such contents. E-way Bill: Very soon E-way will also be introduced. It is better to discuss the modalities of E-way bill with all stakeholders before introducing it. Because as per rules it is going to be very difficult and complicated compliance.