The problems you can face while practicing GST - PART I

GST is new tax and the dealers who traced it from the fundamental stage have committed some specialized errors which were not seen by them within time or they were not rectified by the dealers since the facility of revision of such mix-ups was not there. These were innocent mix-ups and not the extortion and/ elusion of tax.

1. There’s no facility of Amendment/revision Returns.

The very first and major problem you can face is that there’s no facility to amend or revise the returns as we all know that this is a very important facility for every taxpayer. We all are humans and humans do make mistakes. In case, even if you submitted your return with the wrong number of sales or ITC then you have to file it otherwise there will be a penalty once the due date has lapsed. You can only make some corrections by making some adjustments in your next month return. 

2. Reverse Charge mechanism

While practicing the biggest problem you will face is while filing any returns which includes Reverse Charge Mechanism(RCM). There’s no proper column where you can show the sales you made under Reverse Charge Mechanism. While filing GSTR-1 there’s an option of selecting sales made under RCM but while filing GSTR-3B who will not be able to satisfy the fact to where show the amount of sales under RCM. In case, you made any purchases under RCM then you can easily show the amount in your GSTR-3B as there are proper columns for it. But the same facility lacked in the case of sales.

3. The answer from GST helpline desk will make you more confuse

In case, if you are trying to reach the GST helpline desk with the hope of getting an answer for your problem then it all went in vain because the only thing you’ll receive is more confusion. Maybe because the GST needs more time to get back on track and they are only finding the solutions for the problems we all are facing while practicing GST in real life. But the time they are taking is too long and there’s no leniency on the taxpayers for the same. 

4. Claim of ITC

This is a problem which is faced by all the taxpayers while filing returns, especially while paying tax. As the latest notification, you can only claim the excess 10% of the amount reflecting in your GSTR-2A and this decision almost breaks the backbone of the taxpayers. Because even if you have all the legal invoices of the tax paid while making purchases there’s no guarantee that you claim it also as ITC.

Firstly, the second party has shown it while filing their GSTR-1 with your correct GSTIN only then you claim the amount because it is reflected in your GSTR-2A. But in real life it is very hectic to wait for the other party to file their returns and in case they didn’t file then keep poking them to file it. Some of the taxpayers didn’t file their return on time and wait for the other party to furnish their returns so they can claim the ITC(There should be a situation that they are paying that amount as tax liability which is not healthy for them because they have already paid it while purchase).

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