Three important suggestion ,if implemented by GST council then GST(Gabber Singh Tax) will becomes Good and Simple Tax
- GST RETURNS AND INTEREST LIABILITY
As per section 50 of CGST A ct, 2017 every person who is liable to pay in accordance with the provision of this A ct or the rules made there under, but fails to pay the tax or any part thereof to the government within the period prescribed shall for the period for which tax or part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding 18%, as may be notified by the government on the recommendation of the council.
In case if excess ITC availed or some supply is omitted to be furnished in form GSTR 3B, as it cannot be revised, the information furnished wrongly, if any, needs to be corrected at the time of filing GSTR 1 & 2. If there is any increase in liability on this account, then interest is also payable on the excess liability. It may be noted that for the month of July to December due date for filing GSTR 1 has been extended upto and 30th April 2018.Whereas no clue about GSTR-2 and GSTR-3 has been given and deferred till further order.
Technical snags faced may lead to delay in discharging excess liability by many days for which interest will also be liable to be paid by assessee without any fault on their part.
It is suggested that the interest payable on late payment of tax at least be waived off till the period of March 2018 for which due date for filing GSTR 1 has been extended due to technical problem in GST network and GSTR-2 has been deferred till further order.
Alternatively, a payment mechanism of debit of cash or credit ledger be made available to the assessee at any time during such time period.
- One cash ledger instead of separate cash ledger(s)
Credit in C ash ledger is segregated into different heads which made assessee unable to set off the cash credit of one head for other which can be possible if there is a uniform cash ledger.
E.g.: If a person has 1,000/- in interest & a short amount of R s.100/- in late fee then again, he need to transfer amount from Bank Account although an excess amount is lying Electronic cash ledger.
There are a number of instances where flexibly to appropriate amounts deposited in cash ledger is necessary for ease of doing business because the exact tax liability may not be known at the time of making cash deposit. Also, this is similar to request for TDS-TCS to remain in this common can ledger so that Deductor-Collector does not get to decide the nature of supply.
It is suggested that in cash ledger there should be only one cash ledger and as this money is not (yet) revenue of the Government, it can remain with the Union. Let cash ledger act as a E-wallet but, not as a dedicated column for the payment type. Adjustment of late fee, interest, penalty be possible in cash ledger with any head.
Option of offset liability of tax payment at any time basis be provided to avoid interest as merely payment of cash payment in the cash ledger is not fulfilling the requirement of tax payment by the assesse.
- HSN code is required to be mention in GST Return 1 & 2
Notification N o. 12/2017 – Central Tax dated 28th June 2017 provides that a registered person having annual turnover in the preceding financial year less than Rs.1 .5 C rore is not required to mention the digits of HSN codes in a tax invoice issued by him. However, in GSTR 1 & 2 he must give the details of stock sold HSN code wise.
In such cases although the small trader is not required to mention HSN code in invoice but he is required to give HSN code details in his returns.
It is suggested that an alternative way of identifying the rate-wise supplies being reported to give relief to small traders who are otherwise not required to mention the digits of HSN codes in a tax invoice issued by them.
Further, it is also suggested that such requirement in case of GSTR-2 be removed in case of all assessee.
Please add your views /suggestion for Ease in GST procedures