GST@1: Ease of Business or More Complications? We Find Out

Video Editors: Mohd Irshad Alam & Mohd Ibrahim

GST aka Goods and Service Tax was introduced a year ago. Many meetings were held and several amendments were made, however, the process of making changes to the bill is still underway.

The government made a promise to boost the ease of business, put an end to black market and to increase tax collection. But could the government keep its word?

Throughout the year, businessmen have seemed very hassled by the complications in the wake of GST. The Quint spoke with several businessmen to find out how GST was impacting them.

The Headache of Filing Returns

From having to file returns three times a month to being concerned about the lack of time given to file them, businessmen highlight their concerns.

All the CAs and lawyers have increased their fees ten-fold. In a month, returns are being filed three times. Now, would a businessmen do his paper work or keep filing the returns?

Mahendra Aggarwal, President, All India Computer Traders Association

The rule to show the sale of May till 10 June and file the tax by 20 June is inconvenient. You can ask us to give the monthly tax. The government should not have a revenue loss. But we would like it if – like how it was with VAT – we can file the return in three months.

Hemant Gupta, General Secretary, Bhartiya Udyog Vayapar Mandal

A regular retailer wants to maximise sales, calculate his profit and accordingly give the tax to the government. Now thanks to the government, he has go through the tension of looking for an accountant, calculate the taxes and file the taxes.

Chaman Kapoor, Businessman

1 Year, Over 400 Changes

In the last one year alone there have been 28 meetings and over 400 changes made to the GST.

The businessmen have complaints about the constant alterations being made to the proposal as it affects their work.

There are modifications being made in GST on a daily basis. Till date the system proposed for GST has not been implemented. In the name of 3-B, only tax is being collected. It is becoming very difficult for a businessman to work. The government’s system and planning are very poor. We saw that during note ban and it’s the same in GST.

Swaran Singh, General Secretary, All India Computer Traders Association

The laptops and UPS battery was under the slab of 28%. UPS and laptop were under 18%. The laptop bag was under 28%. We could not understand what code to put where while making the bill.

Mahendra AggarwalPresident, All India Computers Traders Association

E-Way Bill, The Unwanted Guest

There have been concerns about the E-way bill that was proposed in April this year. The businessmen say that without any training about how to use the new system, the bill was foisted upon them.

They have proposed to increase the amount in the bill to Rs 1 lakh.

Now with the arrival of e-way bill, again businessmen are confused. We were not trained about the bill. We were just told about its introduction. Now people have so many concerns about the bill. Under what condition should the E-way bill be filed? What are the taxable and non-taxable items in the bill?

Hemant Gupta, General Secretary

One can understand why e-way bill is needed in B2B. But in B2C when a consumer has already paid why is it needed? The condition for the bill in B2C should be removed. In the case of B2B the limit of Rs 1 lakh must be increased. It becomes very hectic to file so many e-way bills on a daily basis.

Swaran Singh, General Secretary, All India Computer Traders Association

The government has postponed the implementation of the Reverse Charge Mechanism by three months, however, businessmen are insisting on its complete eradication. They are even unhappy about the input tax credit.

One year of GST aimed at reducing inflation, promote ease of business, and improving the tax structure. However, the ground reality seems far different from the promises made by the government.

(This story was originally published on Quint Hindi and translated to English.)