Simplifying GST returns: How the removal of ITC payment linkage will benefit SMEs

The Goods and Services Tax (GST) was introduced with effect from July 1, 2017. GST replaces different taxes and also aims at simplifying indirect taxation. The GST Council has been working continuously for making many improvements for better implementation. While the efforts of the GST Council are laudable, there is one important and vexatious problem that needs to be addressed to ensure GST roll out is smooth for all taxpayers, more so for those in the SME sector.

One of the most important provisions in the GST law is that input credit is available to the buyer only if the GST has been remitted by the seller to the Government. This way, the Government is completely shielded from anyone who collects tax, but fails to remit it.

It is true that there is a small minority of tax payers who may keep the government away from its rightful revenue. But to handle problems caused by a small number of such dishonest persons the Government is putting a huge burden on the entire taxpaying community. Just imagine a situation where a person goes to a Police Station to report theft in his house and the police tell him to fetch the culprit and sort out the matter mutually or accept the loss.

Today, there are many safeguards in the system, like Aadhaar, etc, which make it difficult for someone to evade taxes. Such technology must be put to good and provide small and medium businesses an easy and simple way of claiming what is rightfully theirs.

Source: https://economictimes.indiatimes.com/small-biz/sme-sector/simplifying-gst-returns-how-the-removal-of-itc-payment-linkage-will-benefit-smes/articleshow/63218259.cms

Comments

Investing in Gold: Bridging Tradition with Modern Strategies in India

Follow us on - LinkedIn - https://www.linkedin.com/in/aseem-aggarwal-1b365549/ Youtube - https://www.youtube.com/user/aseemaggarwal92 Twitter - https://twitter.com/aseem252 Blog - https://aseemconsult.blogspot.com/ Gold holds a special place in the hearts of Indians, deeply rooted in tradition and culture. For generations, it has been a symbol of prosperity, a hedge against economic uncertainties, and an integral part of auspicious occasions. As we step into the modern era, the allure of gold remains, but the ways we invest in it have evolved. Let's delve into the world where tradition meets contemporary investment strategies in the context of gold in India. The Timeless Appeal of Gold For centuries, Indians have revered gold not only for its aesthetic appeal but also for its intrinsic value. Traditionally, gold has been acquired in the form of jewelry, coins, or bars, often passed down through generations as a store of wealt...

GST officers to be soon armed with real-time data on vehicles moving without e-way bills

Follow us on - LinkedIn - https://www.linkedin.com/in/aseem-aggarwal-1b365549/ Youtube - https://www.youtube.com/user/aseemaggarwal92 Twitter - https://twitter.com/aseem252 Blog - https://aseemconsult.blogspot.com/ The government is working on a system to soon provide report to GST officers on a real-time basis for those vehicles which are moving without e-way bills, to help intercept stuck trucks at toll plazas and check GST evasion. The tax officers would also be provided analysis reports on identifying e-way bill EWB with no movement of goods as it would help officials identifying cases of circular trading. It would also provide reports on recycling of e-way bills for tax evasion prone commodities to help officers in identifying tax evaders. Under the Goods and Services Tax (GST) regime, e-way bills have been made mandatory for inter-state transportation of goods valued over Rs 50,000 from April 2018. However, gold is exemp...

37th GST Council Meeting Highlights

The meeting concluded with several decisions ranging from relaxations in annual return filing, rate revisions, deferment of new GST returns, changes to composition scheme, new GST exemptions and some clarifications detailed as follows: Waiver of GSTR-9A for Composition Taxpayers for FY 2017-18 & FY 2018-19 Composition dealers have been granted exemption from filing of annual returns in GSTR-9A for the fiscal years 2017-18 and 2018-19. In the future, it is mostly expected to be done away since the form GSTR-4 has been tweaked to allow an annual declaration of turnover and tax details. GSTR-9 for small taxpayers now not compulsory for FY 2017-18 & FY 2018-19 Those taxpayers having an annual turnover of up to Rs 2 crore in FY 2017-18 or FY 2018-19, may choose to not file GSTR-9, from the date to be notified by CBIC. GST Council has also decided to review the simplification of GSTR-9, 9A and 9C forms and filing. However, they must continue to file annual returns for FY...

KSA Infomatrix

Search This Blog