CBIC Member Rajiv Talwar received suggestions on GST from traders, tax consultants, and industrialists in Chandigarh on Saturday, June 25, 2023. He was here to know about the problems being faced by its stakeholders while dealing with GST.
On this occasion, The Tax Practitioners Association gave a 10-point memorandum about the discrepancies in GST and for improving it. On behalf of the Association, president CA Shailendra Solanki, secretary Abhay Sharma, GST secretary CA Krishna Garg and Manoj Gupta presented the suggestions.
They suggested that in the early years of GST, some taxpayers had failed to file returns on time due to a lack of knowledge due to which notices of invalidation of input tax credit under section 16 (4) are being issued. Since the tax has been paid on it by the supplier, its credit should be allowed. By invalidating the input tax credit, the government is collecting tax on the same transaction twice - from the supplier and from the buyer, which is impractical.
TPA demanded that an independent officer should be appointed for advance ruling and appeal. At present, this work is done by the administrative officers, due to which the possibility of fair orders is less and most of the orders are issued in favour of the government only. Instead of claiming separately for the credit of TDS and TCS, it should be made a part of the cash ledger. Right now many taxpayers forget to take its credit! Information should be available to the taxpayer as soon as Form 26AS of Income Tax is filed.
Annual returns GSTR 9 and 9C should be made in one form instead of filling them separately. Wherever the turnover of the trader is more than Rs 5 crore, only then the information of 9C should be made necessary. The current amnesty scheme, in which facility is being given to restore the old cancelled registration, credit eligibility should be given, otherwise the trader is facing double problem.
They have been asked to pay tax along with interest and penalty and are not even getting an input tax credit.
Due to the provisions of showing the same transaction in two return forms, penalty has to be paid in both GSTR 1 and 3B forms, which is not fair.
Apart from these, some suggestions were also given by the association for changes in Form GSTR3B. The board member assured to study the above suggestions and implement them. On some suggestions, he instructed the member of Policy Formulation Committee, GST Policy, who was especially present in the meeting, to solve the problem.
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