Arjuna (Fictional Character): Krishna, On the tenth day, "Dussehra" would be celebrated to mark the victory of good over the Evil. Evil thoughts are burned out, thus how 10 GST burning issues would be resolved?
Krishna (Fictional Character): Arujna, as the effigy of Ravana which symbolizes the bad, the evil, the issues in the society which need to be burnt and waded away from the society, similarly there are issues in GST which needs to be taken care by GST Department and needs a resolution quickly.
Arjuna: Krishna, Ravana had 10 heads, which are symbol of evil. What are 10 burning issues in GST that need to be resolved?.
Krishna: Arjuna, following are the major 10 Burning Issues under GST:
1. The September 2018 Return: The return in which effect of any changes in respect to earlier financial year can be taken till the return of September 2018, specially the Invoice wise ITC details if any. Also, the ITC credit if any unclaimed or claimed in excess needs to be claimed or reversed as may apply. This is absolutely wrong provision, time should be given till the date of filing of Annual return i.,e Dec 2018 to corrects all mistakes.
2. The Annual Return: The Return format have been made available but the utility for the same is not available, though the due date to file the return is 31st Dec 2018. Further Annual Returns do not provide a complete solution for all problems like Invoice Addition, modification, etc. The due date clashes with MVAT Audit Report due date i.,e Jan 2019, hence date needs to be extended well in advance or again extension of date issues may arise like of Income Tax audit due date.
3. GSTR 2A: GSTR-2A is available on the portal on monthly basis. Annual 2A cannot be downloaded. This has increased the difficulty to match the Books of Accounts with 2A. This has increased boredom as same thing needs to done monthly.
4. Reversal of Credit: The credit claimed wrongfully or unintentionally needs to reversed. In addition, the credit is taken on purchases, where payment has not been made to suppliers within 180 days also needs to be reversed. Keeping a track of this is the real big burning issue.
5. Extra Tax payment in Cash Ledger! : Arjuna, GST was new for everyone and now books have been closed. Some people have paid taxes in excess of the required amount. However, there is no option correct the challan paid and issues arise in refund claim of the same.
6. Composition Scheme- purchase reporting: In GSTR 4 in Sept 2018 qtr, the composition dealers needs to provide Details of Purchases made during the period. It is also one of the issues, as composition dealer is not allowed to take the credit of Input tax credit so keeping the detailed record of the same is tiresome.
7. Issues of GSTR 3B: Amendment to this return is not available. If any change needs to be made then, one needs to wait for the next return or annual return. Thereby increasing the interest day by day if any liability arises due to such rectification.
8. Issues of GSTR 1: Amendment to GSTR-1 is allowed in other period GSTR-1. But it is interesting to note once amendment is done the same invoice, credit note/debit note or B2C sales made cannot be amended again. That is to say only one chance is available to make amendment.
9. Taxation of Agricultural Commission agent and Joint Development Agreement: Recently clarification were issued in this relation, A big issue is for commission agents of Agricultural produce, Tax needs to be paid on commission in relation to taxable goods but where the product is NIL rated, and its commission won’t be taxable. Taxation of JDA for builders and Landlord is a burning issue.
10. Trans 1 issues: Trans 1 notice in Form 603 is now sent by Department in large. This is going to create harassment to genuine taxpayer, as all records which available with dept are again asked for. Further VAT credit as per revised returns needs to be allowed, a unnecessary harassment is done in such cases of Trans1 litigating it. Various High courts’ order has compelled to allow Trans1 uploading or credits were the hardship to taxpayer had happened. This trend is disturbing, Sue motto department should allow to correct errors or omissions.
Arjuna: Krishna, What one should learn from this Dussehra?
Krishna: Arjuna, Govt should help the taxpayer. These 10 Burning issues need to be resolved immediately and Raavana of GST needs to be burned out. GST law is simple, but the technical issues and mindset of officers need to take care off. In real life and tax laws, there will be always victory of truth over the lie. Happy Dussehra to all.