Suggestions to improve GST

 

Following are the suggestions to improve & make GST more taxpayer friendly.

1.     Input Credit: – Sellers should be made responsible for Deposit of Tax and in case of Mismatch sufficient time should be given to the dealers to settle it but ultimate liability should be of sellers. 

   

 2.     Reform in Returns: – The purchasers have no facility to submit the details of their purchases but if sellers are not depositing tax the liability is fixed on the purchasers. Even the department has no knowledge about sellers’ failure to pay tax on particulars sale. The restriction mentioned in section 16(4) are also too harsh and tantamount to double taxation.

 

3.     GSTR-3B Revision: – The facility to revise GSTR-3B should be given immediately. For want of this facility lot of discrepancies are there and lot of Notices are there and all these activities are taking so much time of Dealers, Professionals and the Department. 

 

4.     Annual Returns: – The format of annual return has no meaning and presently it is not very useful return. This form should be re-drafted to make it more useful and this form should give the dealer a proper facility to declare his actual tax Liability.

 

5.     Interest Rate: – The Interest rate of 24% & 18%  in GST is very high specially comparing the Interest rates prevailing in the Banking and Financial Sector. The rate of interest should be fixed at 2 or 3% more than the market rate instead of making it too high.  Further, The Interest on Tax Liability should be stooped from the date on which the amount of Tax is deposited by the Dealer instead of charging it up to the date of submission of GSTR-3B.

 

6.     Artificial Restriction on ITC: – Artificial restrictions on ITC should be removed specially the restrictions mentioned in Section 17(5). See that the ITC is available on Mobile phones and Computers but the same is not available on Motor vehicles which are used in business of the dealer.

 

7.     The Number of Notifications, Clarifications and circulars are too much and making the Law more complex and confusing and Now the Act and rules should be revisited to make them as simple as possible and rate of tax should be fixed in such a way that No upward updating should be made in Next 3 years.

 

8.     RCM is the confusing and unnecessary provision of GST. Most of its part were removed in the initial Month of GST but still it has it’s effect in the form of some of the Notified Goods and Services. In all those initial 5 years the Taxpayers have not followed it properly but in most of the cases it has no financial effect on the revenue of the Government. In such cases a relief is needed with some sympathy with these innocent dealers.

 

9.     Suitable clarification in law required towards disputed matters like cross charge between HO & branch, consideration paid to foreign branches and treasury activities and if same being considered taxable, then it should be prospective and not from the date of GST inception.

 

10.  GST amnesty Scheme should be there to declare and correct the initial Mistakes made by the dealers while filing the GST returns.