Ten Major Issues after GST implementation in India: Needs Attention!!

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November 2, 2018

gst issues and challenges

As evident GST implementation in India has been a great success in terms of Revenue collection and the detection and control of the invasion of the Revenue. But as we all know every subject and work has its own pros and cons and so has been with the GST implementation.

Though declared by the world bank as the most complex taxation system, the Tax collection department along with the Government has worked very hard to get the GST fully implemented in India and bring the best out of it and has been a success to a great extent.

We witnessed a lot of fraudulent cases which came in light after the implementation of GST. The Administrative department has also walked hand in hand with the tax collection department and thus we saw how progressively the GST has been implemented in India in almost all the departments. GST implementation has been the great achievement of the Government. Initially, Government has to face several complaints due to the complicated process and the less understanding of the business class regarding the filing of the GST tax. But later the process was revised and made easier for all the class and segment of the society. Petroleum products, power, and real estate have been kept outside the GST ambit.

Yet, there are still some major issues like a mismatch in the returns filed, errors in filing returns and also India experienced numerous exporters strikes, which needs rectification. Here we shall discuss the same though keeping in mind that the Government had pre-assumed the problems which could arrive and is all set to get them rectified at the earliest.

Technical Issues regarding Tax filing

There are some burning and solution seeking problems regarding Tax filing. The Taxpayers are looking upon the finance ministry as well as the GST council to get their tax filing problems rectified as soon.

Return Due Dates for September 2018

As directed, the Taxpayers cannot file ITC without getting the invoices matched and the credit of ITC being claimed or reversed, depends solely on the filing dates. The Taxpayers thus want the dates to be extended to December 31st to check any error and to process error-free filing.

Composition scheme dealers and Complexity in the Management of Detailed records

Composition scheme dealers are supposed to give the complete purchase details in the GSTR 4 form and within the filing return dates for September 2018 but the dealers are not allowed to claim the ITC credit. Thus the dealers are facing problems in managing the detailed records.

The questioned credibility of the Annual GSTR 9 form

As there has been no Addition or modification, i.e. no solution has been advised to the taxpayers regarding tax filing, the GSTR 9 annual return form which is due 31st December 2018, seems to be useless. On the other hand, the due date also coincides with the MVAT Audit Report due date i.,e Jan 2019. Thus, the due date for tax filing needs to be extended.

The Reversal of Claimed credit

The credit claimed for such a purchase for which payment has not been made to the supplier within 180 days, needs to be reversed as per the GST ITC claim rules. This is an extra burden on the organization to keep the separate records of such pending claims.

No Refund procedure for the extra Tax Paid

No option for Refund has been kept for the taxpayer if by mistake he has paid extra Tax. Thus the taxpayers are facing problems in getting the extra amount refunded.

Download option not available for the GSTR 2A form

The Taxpayers are facing difficulties in matching the returns with their books of accounts, as the Annual GSTR 2A form has to be filed on the Monthly basis.
Joint Development Agreement Issues

There are some goods which are rated Nil and the commission attached to them are not taxable, whereas, as per rules, the tax liability is supposed to be paid on the commission attached to the taxable goods. Thus, there is a discrepancy between the rule and the actual scenario, hence creating a gap in the understanding.

Issues related GSTR 3B Form

The lack of modification or amendment facility for this return type and the lengthy and delaying Amendment procedure has created interest liability issues.

GSTR 1 Form filing; A serious task

The GSTR 1 form filing becomes a serious task as the credit note/debit note or B2C sales made cannot be modified again in the form.

TRAN 1 form Issues

Trans 1 notice in Form 603 is now being sent by the department to everyone hence creating trouble for the real taxpayers, as the notice requires all the previous records to be made available and that is a tiresome task.

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