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12 SUGGESTIONS FOR SIMPLIFICATION OF GST LAW

12 SUGGESTIONS FOR SIMPLIFICATION OF GST LAW, PROCEDURES & FORMS

It is to provide ease of business to dealers & to make GST “simple” and Help to clear mess created under GST so that compliance level can be increased. (October 2019)

1. FOR ITC MATCHING & INWARD SUPPLIES RETURN- Instead coming with old formula of GST returns with new names, Please continue with GSTR 1 and GSTR 3B. Also Allow to upload ITC details in a new simple self- declared Form Same like Outward supplies we upload as of now. Allow to upload INWARD SUPPLIES ALSO. Let system makes GSTR 3B automatically from all self declared OUTWARD & INWARD supplies .For, ITC matching, Let system do matching just like Gujarat VAT website used to have ITC Profile.

2. FOR ITC mismatching – Don’t punish genuine buyers for all those ITC not shown in GSTR 2A.

Please remove sub rule 36(4) added for 20% cap on ITC not shown in GSTR 2A. This is ultra –vires to section 17 for seamless availability of ITC. Its better catch defaulters than punishing Honest GST tax payers. Since You should allow uploading INWARD SUPPLIES on self- declared basis, Hopefully Website can show RED FLAG for such defaulter Seller’s list in ITC profile .(same like GUJARAT VAT website had ITC PROFILE )

3. FOR IRREGUALR GSTIN – Block for uploading GSTR 1 & GSTR 3B of such GSTIN of taxpayers who does not furnish their return for than 6 months (unless & until they have financial crunches ). Suspend their GST Number. Freeze their Bank accounts. Show an red flag when one search his GSTIN on portal .

4. FOR RCM – REMOVE IT COMPLETELY. Both section 9(3) and 9(4) .

5. FOR REVERSAL OF ITC IF NON-PAYMENT in 180 DAYS – Delete the provisions of Reversal of ITC in case of non payment to Creditors within 180 days and interest thereof if late reversal. Or make it applicable to only Dealers having Turnover more than 100 Crores.

6. FOR PORTAL – The capacity and speed of GST website should be increased. State wise Portal can be made to have smooth functioning. Also change in User interface to allow to view more than 5 line items on one screen and able to see all invoices even if more than 500 invoices.

7. FOR CASH LEDGER – ELECTRONIC CASH LEDGER should be one basket… Cash Ledger Should Be Made With No More Tax Heads like IGST , CGST , SGST , Cess And Also No More Sub-Types Like Tax , Interest , Fees , Penalty & Others.. As of now, 20 baskets when one pay challan on GST portal. Only one single cash balance approach. This was also decided in One GST meeting. Balances of Cash Ledger should be under single head so that it can be utilised for any purposes as deemed necessary

8. FOR LATE FEES collected in FY 17-18 & 18-19 – Refund of all late fees for all GSTR 3B filled up to period March 2019. It was anyways waived for some very late fillers lately. Otherwise it will be injustice to those who have been late in filling only few days & paid LATE FEES.

9. FOR MAXIMUM LATE FEES – You can keep Late fees per day as low as RS. 10 but maximum late fees for late filing of Returns should not be more than NET Tax Payable or Rs. 1000 whichever is lower under CGST & SGST. (Moreover, Late fees should be only from 2019-20. Please Refund late fees collected for FY 17-18 and 18-19).

10. FOR INTEREST ON LATE PAYMENTS in GSTR 3B – Let system do calculations of Interest payable on GSTR 3B late filling. Same like it calculates Late fees. Of course Interest on NET Liability. & retrospectively this provision should be amended so as to make Interest liability only on NET tax liability. This can generate lot of Revenue for Government.

11. FOR PENDING ITC OF PREVIOUS YEAR – The Dealers should be allowed to take eligible ITC before filing the Final Return (Annual Return) for every coming FYs. 12. FOR GSTR 9 & 9C – Table 8, 17, 18 of GSTR 9 should be removed. Table of HEAD WISE ITC Presentation in GSTR 9C should be removed.

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Opinions & information presented by ConsultEase Members are their own.
  • divya khandelwal

    Well written!!