Fwd: Representation to GST Council
P.D.RUNGTA
1. Change the monthly GSTR 1/2/3 requirement to quarterly returns, for tax payment, may continue with 3B.
2. Remove the requirement of self invoicing, payment voucher etc, which will reduce the problem faced by small traders and enhance the compliance by them.
3.Either remove the requirement of RCM or increase the limit from 5000 to 20000
3a. If RCM IS TO STAY THEN THERE SHOULD BE ONLY ONE RATE OF GST
3b.RCM should be in only cash transaction and limit can be 10000. It will then have the parity with Income tax law.
4.Remove the provisions of using HSN code.
5.Cash ledger adjustment may be allowed against all heads of payment.
6.Increase the limit of composite scheme from 75lacs to 5 crs...
6a.Remove applicability of 9(4) from composite registered assessee
7.Dealer making inter state supplies 20lac need not be compulsorily regd.
8.Revision of Returns must be allowed
9.In GSTR 3B modification should be allowed
10.The interest should be charged till the date of payment and NOT till the date of off Set.
*If you have any suggestion for better compliance and smooth implementation, please forward us in what's up or through mail at pdru...@gmail.com to incorporate in the representation*
Pramod Dayal Rungta Managing Partner: P.D.Rungta & Co., Chartered Accountants
Head Office: 21, Hement Basu Sarani, 3rd Floor , Room .No.317, Kolkata-700 001,West Bengal, India
Branches : Bhagalpur | Khatima | Mumbai | Ahemdabad | Banglore | Delhi | Bhilwara
Homepage : http://www.pdrungta.co.in/
P.D.RUNGTA
With respect to smooth implementation of GST and reducing the compliance cost, We are highlighting certain issues / problem faced by MSME sector / small dealers (turnover up to 10 Cr) of various industry for the consideration of the GST Council.
A. Issues related to return (GSTR- 1/2/3/3B)
1. It is very difficult for small trader to manage the monthly compliance as such traders are small organisations with limited resources (eg. Manpower, finance, Infrastructure). Monthly compliance results in blocking of the limited resources into compliance work which hampers the business.
Request: Change the monthly GSTR 1/2/3 requirement to quarterly returns, for tax payment, may continue with 3B.
2. Several time due to clerical error GSTR-3B return is filed with certain mistakes. Request: In GSTR 3B modification should be allowed
3. The GSTR1 entry needs to be simplified as B2B and B2C only. Analysis based on HSN, Big and small Invoices etc creates too many confusions. Direct export of data from Excel Template should be facilitated. Let the server be modified to accept Excel Files instead of JSON Files.
4. GSTR 3B : (a) It is difficult to identify whether the buyer is a composite dealer or not. Request: Remove requirement of providing the details of supply to composite dealer
(b) for input credit there is no mention of local purchase input credit. This should have been the first item. Thus we are putting local purchase under the last item under the head OTHERS. Surprisilingly, the first item is IMPORT, which is of use to not even 5% traders.
5. The GST returns require details of Non GST & Exempted Receipts, which again is cumbersome for MSME sector. Needs to be done away with as no loss of revenue.
6. Option should be provided to submit GSTR 1/2/3 at one go like Vat Returns. Why should one wait for uploading of his suppliers' GSTR 1 for submitting his GSTR 2. Let the system check the input credit and if their is any discrepancy let them correct.This will also eliminate requirement of GSTR 3B
B. Issues related to RCM
1. Identifying the expense whether attracts exempted or taxable and whether will attract RCM is very burdensome and challenging for the small tax payers. Further paying tax under reverse charge and then claiming the credit creates pressure on the working capital as it temporarily blocks the fund which hampers the smooth running of the business.
2. Calculating the RCM liability for all the expenses under RCM is quite burdensome for the small dealers.
3. RCM under 9(4) is a cumbersome process, wherein it is difficult to tally purchase bills, cash book, petty cash book etc to calculate the URD purchases on a daily basis.
Request:
a. we may suggest that 9(4) be done away with, In any case one gets credit of most items under RCM, which is revenue neutral.
b. If RCM is to stay then there should be only single rate of GST and limit be increased from 5000 to 20000 per day
c. If RCM is to stays, should be only on cash transaction
C. Issues related to HSN/ SAC
1. Some goods of similar nature may fall under different HSN and may results in differential tax rates also.
2. Identifying the correct HSN and SAC is quite taxing on the small traders and dealers.
Request:
a. Remove the provisions of using HSN code.
b. Clarification on regarding classification of the various goods/services under correct HSN code.
c. Relaxation for interest and penalty if erroneously classified under wrong head/HSN.
D. Issues related to tax payment
1. Cash deposited under CGST head cannot be used for payment of SGST/UTGST/IGST liability.
2. Partial offset of liability not allowed. If there is say Rs. 99000/- in the E-cash and E- credit ledger and total output tax liability is ` 100000/-. The system does not allow to offset the liability upto`99000/-. This results in undue burden on the trader as the interest is charged on entire non payment of ` 100000/- even though ` 99000/- is available to be offset.
Request
a) Cash ledger adjustment may be allowed against all heads of payment.
b) Partial Offset of liability be allowed as it creates undue pressure on the working capital as the partial amount even though available for offset has to suffer interest.
c) The interest should be charged till the date of payment and NOT till the date of off Set.
E. Issues related to Documentation
1. Due to limited resource the requirement related to self invoicing, payment voucher etc, is very difficult to manage by the small traders. It requires further deployment of specialised personnel for the task which results in increase in compliance cost and also hampers the day to day business of the small traders.
Request: To remove the self invoicing and payment voucher requirement which will reduce the problem faced by small traders and enhances the compliance by them.
2. Linking of credit note/debit note with original invoices for post sale transactions (It results in burdensome compliance for the registered person to issue separate credit note & debit note for each and every discount and then to tag with original invoice).
Request: To allow to issue a single credit/debit note instead of multiple notes for each invoice.
3. Remove provision of proving details of all types of documents with their serial number. Only sales related documents should be provided.
F. Issues related to Composite Dealer
1. Increase the limit of composite scheme from `75lacs to `5 Crores.
2. Remove applicability of 9(4) from composite registered assessee
G. Issues related to GST Portal
1. ‘File could not be uploaded. Download the latest version of offline tool to generate the JSON file or ensure to validate your uploaded file against the template published at Specification Portal’. Error reflected even after the latest version is used while filing GSTR-1 for July’17.
2. During making changes in the data fed in GSTR3B after saving, changes are shown in the portal but after submitting old data is showing again.
H. Issues relating to transitional credit
1. Input tax credit of the stock is available for the invoices not older than 1 year. Since the tax has already been paid on the same under earlier tax laws even though the stock is older than 1 year transitional credit shall be allowed on the same.
I. Miscellaneous issues
1. Dealer making interstate supplies upto `20lac need not be compulsorily registration.
2) As per the statement of Mr Hansmukh Adhya, credit of RCM taxes payable in a particular month, can be taken in the same month, even though such taxes are payable next month. We need a clarification as the rules seem to suggest that RCM credits are subject to payment.
3) As per advertisement on GTA issued by the department, services availed from Non GTA, individual truck owners is exempt, however experts are still divided on this, hence, suitable clarification needs to be taken. Moreover many of us have paid GST on such services and will be availing ITC on it. Now is this acceptable or one needs to ask for refund of taxes wrongly paid.
4) Treatment of Goods Returned By Buyer from the gate without unloading or accepting documents. Such invoice will not be reflected by the buyer in their returns hence the question of issuing Credit Note does not arise. The only option is to cancel the invoice, the rules do allow cancellation of invoices but are silent as to the conditions under which invoices can be cancelled.
5) The E-Way provisions with add to the compliance burden of small trades & MSME industries, hence we humbly propose that the threshold invoice limit for issuing way bills be raised from Rs. 50,000 to Rs. 1,00,000/-
Pramod Dayal Rungta Managing Partner: P.D.Rungta & Co., Chartered Accountants
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CA. S K Mishra
GIST OF 22ND GST COUNCIL MEETING HELD AT NEW DELHI ON 6TH OCT 2017
- Composition Scheme threshold limit increased to Rs.1 Crore from Rs.75 lakhs and the option to exercise the same opened till 31.03.2018
- Reverse Charge mechanism U/s 9(4) of CGST Act & 5(4) of IGST Act suspended till 31.03.2018.
- Service provided by GTA to Un-registered person exempted
- Registered person with Annual Turnover upto Rs.1.5 Crores will file Return Quarterly & pay GST also on Quarterly basis.
- E-Way Bill deferred till 31.03.2018
- TDS/TCS Provision Postponed till 31.03.2018
- No registration required for Interstate Supply of Service upto Rs. 20 lakhs
- Merchant exporters will now have to pay nominal GST of 0.1% for procuring goods from domestic suppliers for export
- Works Contract service provided to Govt or local authority will attract GST of 5%.
- No GST on advance received from customer for tax payer having annual aggregate turnover up to Rs.1.5 Crores
S K Mishra, FCA, FCMA, LL.B, MBA, M.Com (Gold Medalist)
WhatsApp 9805072910
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