GSTN released format for GSTR 1 - it is surely not simple tax

New Delhi, Aug 8 (KNN) The Government has started using the catchword ‘GST- the Good and Simple Tax’, but the ground scenario is completely different.

Around the weekend the GST Network, GSTN, has released the format for GSTR 1 the return to be submitted by every registered person every month.

Far from being simple it is quite complicated and need support of regular software as well as a data entry operator.

The return consists of 12 spreadsheets of which 7 to 8 must be filled by even the smallest suppliers who have registered with GST.

In the earlier tax regime, the basic purpose of exemption from excise duties for micro and small enterprises up to a turnover of Rs. 1.5 crore was to minimise the burden of compliance.

That is now re- imposed with a double whammy of much reduced exemption limit and much complicated reporting system.

It is surely not ‘Good and Simple Tax’.

While all the formats of the monthly return have their own share in the confusion created, the real problem any small and micro enterprise will face is with the formats titled ‘HSN’ and ‘master’

In the HSN format the supplier will have to provide summary of all goods and services provided as per the HSN number, mentioning total quantity of each item, total value, total tax realised etc.

On the other hand the ‘master’ format need measurement unit wise, that is, total kgs, pieces, dozens etc. of all supplies made, tax collected etc…

While other return formats may be filled from a manual or simple computer record of invoices, the last two surely need dedicated software.

And also the entire filing process needs service of a trained data entry operator for error free uploading…

Question is could an enterprise, with say an average turnover of Rs, 25, 000 per day, which makes an annual turnover of about Rs. 76 lakh, just above the composition scheme threshold, afford all these paraphernalia, that also on a continuous basis?

While reactions from the small enterprises are yet to come, the moot point is that the Government need to simplify the procedure of returns, at least for the micro and small enterprises.

Besides minimising compliance burden of MSEs this will also much reduce the administration cost of tax authorities. (KNN/ DB)

COMMENTS

Tax Adv. BSKRAO 10/08/2017 6:07 PM

WHETHER GST IN PRESENT FORM SUITABLE TO INDIA ? GST in present form is the most complex law as compared to GST Laws prevailing in other nations. Another draconian & complicated law going to trouble Indian assesses. GST in present form is not one nation & one tax or good & simple tax as promoted by our central Govt. When separate GST for each States of India has been proposed with constitutional powers to levy tax at the discretion of each State, how come it is one nation & one tax. In proposed GST Law of India, major Receipts & Payments of business enterprise are liable for GST and the balance Profit is liable for Income-Tax. Ultimatley, nothing left to the business man & everything eaten away by Govt. in the form of tax. Yahi hi achha din, enjoy it business man of India. In fact, Modi Govt. is fooling the whole public & assesses. Govt. wants the dealer to keep on indulging in compliance round the year is clear from return filing compliance procedure prescribed in GST. This is not expected by the Govt. Our learned Revenue Secretary Mr.Hasmukh Adia Sab, is misguiding whole of India in his speech. I always think in the angle of practical approach and decide pros & cons of any new tax system. Any one objecting me, should keep in mind that separate GST for each state with multiple rates of tax plus tax under RCM that too charging the same in the bill separately as SGST and CGST is not one tax & one nation and good & simple tax. Rather INDIA GST is highly complicated & not compliance friendly law. Strenuous efforts of learned officials in Ministry of Finance, Govt. of India to make the Indian GST law highly complicated has been appreciated by PM heading our nation is a catastrophic situation. RCM on Business Expenses under GST is a big blow on poor & middle class Indian citizens, as it is paid out of their pocket, when deducted by service receiver in their payments. Hence, RCM on Business Expenses under GST is nothing but tax on Income of other person & take the footing of Direct Tax, requiring the Govt. to delete Income-tax Act. To sum-up, present form of INDIA GST LAW is not compliance friendly, but one of the highly complicated & worst GST LAW in the world. Our Central Govt. is troubling & misleading the public at large. B.S.K.RAO, B.Com, LL.B, MICA, Auditor & Tax Advocate, BDKRAO, Beside SBI, Tilak Nagar, Shimoga-577201, Karnataka State, INDIA. Mo : 0-9035089036 E-Mail : raoshimoga@gmail.com

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