Chandigarh,29.06.17-With one day remaining for GST roll out, taxpayers are in a dilemma as how new tax regime will take off. Although government is putting its best step forward, GST still look like an un-organised Big Fat Indian Wedding. There is never ending ticklish issues which the Government should address before even thinking about roll out of GST. Ground realities of GST are much different. Following are the issues which might create a huge chaos in GST Implementation.

  1. There is no clarity as to what would be the fate of area based exemption units. What merely a taxpayers knows is that there is a reimbursement mechanism which government is going to introduce in place of Area based exemptions. There is no proper procedures and menus laid down for such units. With one day to go such units are facing huge issues in GST planning and making future GST road map.
  2.  2.     The registration procedures online are becoming tedious every moment. Number of taxpayers have not yet been issued provisional ids and passwords for migration to GST. Even if some of them are issued such passwords the GSTN reflects “RC Cancelled” status. Even if, few of them are able to login they fail on the last verification step, where the system does not accept the digital signature and creates the fuss. Although government has helplines which keeps the taxpayer waiting in long queues for his turn.
  3.  3.     The government is changing the law every now and then. The GST rules which were earlier issued by the GST Council and which had become part for GST implementation has been totally revamped by notification no 10/2017 issued on 28.06.2017. Such changes are making GST a daunting task for the taxpayers. Such changes are totally uncalled for and gives an impression that government itself is not ready for GST rollout.
  4.  4.     The taxpayers have been informed through tweets and statements of high GST officials that no penal action shall be taken against the taxpayers during first year, if such defaults are other than frauds and suppression of facts. But no official notification has been issued in this regards. This creates a confusion about the legal validity of such tweets and statements.
  5.  5.     For new registrants who wish to apply for GST are not able to apply at the GST portal. For the taxpayers covered under reverse charge mechanism and who are merely required to furnish their data to the GST authorities, are still searching for the formats of such application since these formats are still not available on public platform. The Government should first provide all relevant forms and advisory at GST portal and then start working towards big GST party at parliament on 30.06.2017.

Looking at the issues above, it is in the interest of the nation that government should defer GST for at least 10-15 days after all the procedures and form are properly laid on the website. Although GST will give positive results, one year down the line but such a chaotic migration to new tax regime would leave a bad marks on the mind-set of the taxpayer.

Keshav R Garg

(B.Com, CA, CS, ISA (ICAI))

 

Faculty for GST: Indirect Tax Committee of ICAI

Author: Bharat's GST Ready Reckoner

            A Handbook on GST

Member: Indirect Tax Committee of CII

Founder: MyGst.MyTax Foundation

Adviser: Industries Association of Chandigarh

             Chambers of Chandigarh Industries

 

Address: 3328, First Floor, Sector 27 D, Chandigarh, India - 160 019

Phones: +91-172-461-3328, +91-98880-90008

Mails: mygst.mytax@gmail.comkeshavgarg@kdai.in