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Credit Flow in GST Regime - And the Discredit goes to ...


Credit flow in GST - no credit to the tax payer

Shailendra Sir,

Again a master piece from you but lacks the humor content as always expected from your columns.

Today the credit is physical document based (Original VAT invoice) and "duplicate for transporter copy etc in Cenvat), still it is difficult to get the credit because of do's and don't of the credit rules and condition besides the "generosity" of the departmental authorities. There are multi levels of "physical" checks.

Now the credit under GST regime - it would be suicidal if credit is linked to the payment by the supplier/provider. Flow less credit must for success of GST.

What could be the solution is that the supplier/provider/buyer - would up-load the invoice wise summary of transactions (I believe this is being done today for generating Form-C etc in the State VAT portals)on the GSTN portal and matching would happen.

Now the point of "mis-match". Today also the VAT portal gives report of mis-match in various States i.e. Delhi, Karnataka, Rajasthan etc. and the same is allowed to be rectified to some extent. The same system would work in GSTN.

The most important change which is must is the dedicated team of good officers and system professionals to resolve the "assessee's difficulties" & a 24*7 "real help center".

Further the officers should be tuned to understand that the compliance is not the responsibility of the tax payer only but of the Government also and they must pro-actively support not distort.

Regarding the "stamp duty" - this is an area which would definitely face stiff opposition from both sides. The real money and power lies in it and comes from it, used for it and used by all for all purposes which matters in today's time i.e. political, social and so on.

Alternatively reducing cash transactions in this area is to link the "e-stamps" with the seller and buyer's bank account and reference of Cheque/draft etc on the stamp paper itself where bank would automatically deduct TDS on major transactions.

Arbind Aggarwal

Arbind Aggarwal 21/05/2015

 

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