Industry body Assocham has sought deferment of GST implementation proposed from July 1, stating that industry deserves more time and assistance to get prepared for implementation of this biggest ever tax reform undertaken by the country.
GSTN issues
In a letter to the GST Council Chairman and Union Finance Minister Arun Jaitley, the Assocham Secretary General DS Rawat said significant amount of work has been done on the Goods and Servcies Tax (GST) front, but there are various issues that need to be looked at before it can be implemented successfully.
Assocham said going by the statements of CEO, GSTN, the network will not be operational on July 1. It has been clearly stated by the CEO that the return module (which will facilitate filing of different returns before different prescribed dates) will be ready only by end-July, which will be before August, the month of filing returns.
The important point to note here, according to Assocham, is that there will be no time left for dry run with the revised IT software on the return module, a necessary requirement from the point of view of taxpayers.
Second, even the excel sheet , based on which taxpayers will have to upload invoices in the GSTN on a daily basis right from July 1, will be ready only on June 25 (going by GSTN Chairman’s reported statement in media). Thus here also the taxpayers will not have the time of opportunity to have dry run on uploading of invoices as a part of the payment process.
Questions preparednessThis being the status of preparedness of the GSTN, the taxpayers would find it very difficult to comply with GST requirements from July 1, the chamber has said.
There are also few more concerns including the fact that a substantial number of assessees ‘remain unmigrated’ to GST; system glitches during migration process raises questions as to the ability of the system to withstand huge traffic in GST and existing non-assesses who are liable to be registered under GST are prohibited from registering under GST.