It has been contested by the big players that
E-permits for entering into the states shall be a bane under a GST Regime. What
if the Invoice Reference Numbers (IRN) work like Fast tag at the toll plazas.
The concept of the Invoice Reference Number has been brought since the discussions
about GST Implementation had started.
As per sub-rule (4) of rule (2) of the Draft
Invoice Rules had already prescribed the Invoice Reference Number which shall
be generated online after uploading the relevant Invoice. The IRN will work as
the smart number which shall be presented by the transporter at the barriers
and the through online verification such transporter shall be given the green
signal to move ahead. Most of us are comparing it with the traditional
inspector raj, where the transport vehicles used to remain stuck for hours and
hours. But this would not be the scenario in case of IRN. Practically it takes
only few seconds for crossing a toll/barrier provided you have proper documents
with you. More so GST Law provides that where the transporter is carrying the
goods exceeding the value of Rs. 50,000/- without IRN, he shall be personally
liable for the same. Even the transport vehicle can be impounded and all the
goods be confiscated. In such a scenario even the transport unions will abstain
from carrying the goods without the IRN. The end to end control will plug the
leakages and the flaws present in the earlier Tax Regime. We had discussed
about IRN in our earlier blog dated 13.11.2016. http://mygstmytax.blogspot.in/2016/11/transportation-of-goods-under-gst-regime.html
For practically implementing the concept of
IRN the department needs to have robust infrastructures in order to monitor the
movement of transport vehicles. The draconian provisions of GST will certainly
hamper the way we have been doing businesses right now, but once the trust is
developed between the taxpayer and taxation authorities, at that point of time
we can actually expect free flow of goods. It is most likely that a stage would
come where the online system would be verifying the vehicles and there would be
no need to deploy the tax authority at such barriers.
Keshav R Garg
(B.Com, FCA, CS, ISA (ICAI))
Author: Bharat’s Analytical study of Revised GST
Bharat's GST Ready Reckoner
A Handbook on GST
Member: Indirect Tax Committee of CII, PHDCCI, MyGst.MyTax
Foundation
Advisor – Industries Association of Chandigarh
Address: 3328, Sector 27 D, Chandigarh, India - 160 019
Phones: +91-172-461-3328, +91-98880-90008
Mail: keshavgarg@kdai.in
nice blog for GST
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