Indore (Madhya Pradesh): Even four years after launching the historic new indirect tax regime - Goods and Service Tax (GST), the basic problems of the traders have not been resolved so far. For example, if a seller has not filed the GST return, then the buyer can’t take advantage of input tax credit (ITC). Such anomalies are resulting in the financial burden of the traders.
Chartered accountant Kirti Joshi, who is former chairman of Indore Branch of the Institute of Chartered Accountants of India (ICAI), said this on Friday while addressing a virtual seminar organised by Tax Practitioners Association.
GST as well as income tax expert Joshi highlighted various aspects of the GST which are putting adverse impact on ‘ease of doing business’ sentiments. He mentioned that more than 40 writ petitions challenging the various provisions of Section 16 of the GST law regarding input tax credit are currently pending in various high courts of the country. Most of them are based on the goods or services offered by the trader.
All the taxpayers are suffering as a result. Today, fraud in GST and fake input tax credit remains a headache for the government. Keeping this in view, the Finance Ministry has taken some tough decisions in the past so that cheaters can be caught and wrong inputs and tax evasion can be checked.
In the coming time, traders will have to deal with many problems, such as if a supplier does not file his return on time, then the buyer will have to suffer the consequences. In such a situation, many big traders will not pay for the purchased item to the small supplier. Unless he files the GST return, the problem of working capital will increase in front of such small traders as their credit sales will increase.
