A
year to remember, a year to cherish and a year which wrote history for India.
India witnessed the major tax reform since its independence which replaced the
traditional indirect tax law to modern GST. Government, System, Taxpayers are the three pillars of this
modern tax law. Like a mother who goes under severe labour pain to give birth
to her child, same way we all had similar pains to give birth to the child of
the nation “GST”. Like a mother who faces what not while first year of her
motherhood, we also had the same feeling grooming GST towards its first
birthday – 1st July 2018.
We
have seen a lot of ups and downs in past 52 weeks and every day was a new
challenge for the taxpayer, be it technical glitches, change of tax rate,
change of returns etc. etc. etc. But one thing is pretty sure that the way both
taxpayers and government has responded to the problems, it was commendable. By
the end of the year it seems that GST portal which is the backbone of the
modern law is working properly. On our birthday we never see what has happened
in past, but we make our plans and goals for the future.
GST Version 2.0 is expected to make
major changes, of-course in favour of taxpayers.
Firstly
we expect further rationalization of the tax rates. Only few items should remain
in 28% tax slab. Doing this would help government to have better tax collection
and more importantly administering the tax. There is a need of tax overhaul in
terms of tax structures.
Secondly,
refunds, be it for exporters or the budgetary support to area based exemption
unit is souring the taste of the online based tax law. The government should
come with concept of e-wallet for the exporters as soon as possible. The
process needs to be ease down to ensure that the huge amount of working capital
does not remain stuck for so long. Even in case of exports with payment of tax,
a provisional refund should be granted in time bound manner. The transfers of
data from GSTN to ICEGATE can be done at a later stage. This will help the
exporters to continue their operation without the worry of blocked working
capital.
Thirdly,
there is a need to simplify the return form under GST. People have some how
managed a full year round the clock compliance understanding to be 1st
year of GST. But if the same continues, the day is not far when they shall
start retaliating to the increasing compliance burden. If matching concept is
to be kept, single page return form as proposed is beyond my imagination. The
government should sit down and analyse the problems being faced rather than
falling in the trap by making decisions in haste.
Fourthly,
although there were GST help desks, GST emails etc. but the fact remains that
most of the grievances of the taxpayers had remained unresolved. There is a
need to setup a help desk and area based help units to provide time bound
resolutions to the taxpayers. Sharing the screenshots without proper resolution
solves no purpose.
Lastly,
there needs to be appropriate lower level forums for advance rulings. Its been
only one year and already there are huge number of cases filed with the various
authority for advance rulings. There is a need to encourage provisional
assessments and work out lower level methodology to expeditiously resolve the
problems faced by the taxpayers.
Thanks and Regards
Keshav R Garg
(B.Com, FCA, CS, ISA(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
Adviser: Chambers of Chandigarh
Industries
Address: 3328, First Floor, Sector 27
D, Chandigarh, India - 160 019
Phones: +91-172-461-3328,
+91-98880-90008
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