JANUARY 17, 2018

By M M Burande, Thermax Ltd

SOME of the difficulties  faced by the trade are as below -

1. Retention  - As per the proviso to Section 16 of CGST Act, 2017, we have to make payment to vendors within 180 days, failing which, required reversal of proportionate credit availed. The retention of money for the performance guarantee or any other trade purpose is standard practice. Hence, many a times payments for retention is made after 6 months may create trouble for credit. Earlier tax regime CBEC had issued circular No. 122/2010 allowing credit of retention. Such instruction/clarification is required in GST.

2. Tax on Advance  - The Govt. has deferred the tax on advance till March 2018 for supply of goods, however, considering the present difficulties faced by the trade, it may be further differed till March 2019.

3. Export Refund  - Though the Govt has issued instruction for  manual refund of GST paid on Export, the refunds are not getting sanction on procedural problems like IEC code is not linked at port of export, or the GST Invoice is not referred in Shipping bills etc. The Govt. must refund the GST on export to the trade on time may by matching the documents manually.

4. Digital Signature  - Presently, lot of assesses are facing problem for change in authorised digital signatories. There is no provision to change the authorised signatories in the network & DSC is mandatory for filing the returns or any other information in GSNT Network. The returns are submitted but not filed and next return is not allowed to file unless first is finally filed with DSC. This facility for change in digital signatory needs to be allowed in the network.

5. Debit/Credit Note  - In GST regime the Debit & Credit Note can be generated only with previous reference of GST Invoice. This is creating trouble for generating these documents, specifically for earlier tax regime transaction. The filing of data for debit/credit note is not allowed in the network for earlier period transaction. Hence, return filing is difficult. It may be allowed to raise these documents without GST Invoice reference for earlier tax period.

6. GSTN Network (Software)  - Bulk uploading of data in the GSTN network is denied if it is not in JSON format file, and the Excel to JSON converter is not made available by the GSTN Network to the trade. The JSON converter needs to be made available immediately. OR the network must accept excel files. 

7. Help Desk  - The Govt has created helpdesk for quick response to the queries of the trade, however, it is not responding the queries raised by the trade, even after months. It is expected that the helpdesk should respond on time to give the correct guidance to the trade.

8. Solar Power Plant   --We are supplier of Solar Power System/Plants/Waste to Energy Plants. These non-conventional power plants/system attracts 5% GST under Notification 1/2017 IT(Rate) dated 28/06/2017 sr. no. 234. However, this Sr. no. extend the partial exemption only for Tariff Heading /HSN 84 OR 85. Where as the Sr. no. 451 of the same notification has given the classification for Power Plant as 9801. Hence, by harmonious reading of these to entries one can concludes that All Power Plants, including the Solar Power Plants/System / Waste to energy plants should also to classified as 9801.

Suggestion --The Sr. 234 specifically, extending partial exemption of 5% GST to items mentioned in the column 3,  but falling under Tariff/HSN 84 or 85 only, hence creating problem. Therefore, you are requested to amend the sr. 234 by  adding "9801" OR "Any other Chapter " to this entry. This will resolve the probable problems & fear in the minds of trade.

9. HSN 9801 --The Sr. 451 of this notification 1/2017 IT(Rate) classifies the Power Plants under HSN 9801. This HSN is copied from the Customs Tariff for Project Imports. The Project Imports are specifically specified by the Central Government hence, there is word  "Specified Project"  in the Project Import. Where as, in GST such wording of Specified Project is not required as there is no need of such wording. The GST Act has not specified such projects any where in the entire Act. Therefore, there is a possibility of revenue officers may interpret this strictly & may deny the HSN to all the Power Plants. Hence, you are requested to delete the word "Specified Project" from the entry no. 451, by amending the notification.

10. E- way bills  - As per the latest decision of GST Council, the e-way bill may be required from February 2018 for all the inter- state movement of goods. However, considering the preparedness of GSTN & trade, it may be further deferred till March 2019.