Solve practical difficulties under GST: CAs to Govt

Source: The Hitavada      Date: 07 Sep 2017 09:24:11


Business Bureau,

The delegation of Nagpur Branch of The Institute of Chartered Accountants of India (ICAI) met P K Agrawal, Joint Commissioner of State GST and discussed various issues which are being faced post implementation of GST.
The delegation, led by Chairman of Nagpur Branch CA Sandeep Jotwani explained the various practical difficulties along with the issues being faced by the trade and industry. The delegation pointed out the issues arising due to the Reverse Charge Mechanism (RCM) which are creating problems for traders specially small businessmen. Also, as the returns are to be submitted on monthly basis, it is creating hardship for small traders who cannot maintain records on day to day basis. While filing the returns, the details of all invoices along with quantity are required to be filled in.

In many businesses, there are multiple items wherein it is difficult to provide the detailed list of all items. The delegation pointed that under GST revision of return is not permitted. This being the new law, there are difference of opinion along with chance of human error due to substantial increase of work. Under such circumstances, revision of returns should be allowed. Also, after submitting the return and before uploading the same, corrections should be allowed.

Under GST Law, payment only upto Rs 10,000 can be done thorough cheque and any payment above that has to be done on-line. This is creating difficulty for small tax businessmen and service providers, who generally don’t have the facility to make on-line payment. Considering the same, the limit of cheque payment should be increased atleast to Rs 50,000. The delegation pointed out that in the recent times, it had witnessed that the Infrastructure required for the smooth compliance of GST is not fully ready.

Government has already deferred the filing dates of returns for July and August and also introduced an additional form 3B. The website was unable to handle smooth filing of this summary Return Form 3 B form also. Further, several dealers 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 is required on when the required form will be released for e-filing and clarity on whether they are required to file GSTR - 3B ‘nil’ return. Most of the dealers who wish to effect amendments to their registration are unable to do so due to technical problem as the amendment window is still not fully operational.

The delegation said, in the registration certificate issued by the department, the date of certificate issued is shown as effective date of registration instead of the date of application or the date of start of business.

The delegation discussed various other issues which require necessary clarification and action. They requested the authorities to represent the problems being faced by the consultants and dealers to the appropriate authorities and to request for necessary support and guidelines. The delegation appreciated the efforts of the department and thanked for all its efforts for the benefit of public and helping in smooth compliance of the law.

P K Agrawal accepted the memorandum submitted by ICAI, Nagpur Branch and assured to forward the difficulties being faced to the concerned department to take decision in this matter. He also assured to organise seminars on these issues whenever required for providing the required information to the members of trade and industry as well as professionals. Prominently present were CA Umang Agrawal, CA Suren Duragkar, CA Sanjay M. Agrawal and CA Satish Sarda.