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January 9, 2021

WMTPA Letter to FM- Highly Disappointing GST Audit Due Date Extension

by CA Shivam Jaiswal in GST

WMTPA Letter to FM- Highly Disappointing GST Audit Due Date Extension

The Western Maharashtra Tax Practitioner’s Association (Known as ‘WMTPA’), Pune, (formerly known as The ITSTP Association) was formed in 1980 with the object to assist the professionals and resolve common problem faced by the tax professional. WMTPA is one of the largest associations of Tax Practitioner in Maharashtra state and having about 1500+ members consisting of Tax consultants, advocates, chartered accountants & cost accountants who are practicing in taxation, corporate and other allied laws. Association’s primary objective is, to help the member to get acquaint with changes in various laws as well to help the government, by representing, issues faced by taxpayer as well as professionals

On time-to-time basis, our association WMTPA is submitting representation to your office on various aspects. Initially government was very positive with issues faced by professionals under GST and provided relief, as GST being new levy.

I. However, in recent past, all professionals and professional bodies are strongly feeling that, government is not recognizing efforts taken by all professionals for implementation and streamlining of gst. We would like to draw your attention that:

a) Professionals are Financial Pillars of Government- When government is able to collect monthly GST Revenue of R 1 lakhs crore approx, it is day and night efforts of all professionals in ensuring timely filing of GST Return from all taxpayers and needless to say, under GST, returns can not be filed without payment of tax.

b) GST is still unstable law – Even though, government is brining various notification on mid night, it is we professionals ensuring its implementation to all taxpayer. We are able to digest around 927 Notification/Circulars/ROD till date in last three years, which might be “world record” for any Tax Levy. This shows how much GST is unstable till date.

Notifications/ Circulars/Order2017201820192020Total
Notifications: CT + CT Rate122109107100438
Notifications: IGST + IGST Rate62353211140
Notifications: UTGST + UTGST Rate6445317147
Notifications: Cess + Cess Rate834015
Circulars: CGST + IGST + UTGST + Cess29565014149
Orders: CGST + UTGST1242119
ROD: CGST + UTGST1413119
Total298256239134927

c) Professionals are bridge between Government and Taxpayer – We are bridge between Government and Taxpayer. We are also not interested in demanding any Extension, but when things are not in our control, businessmen finding it difficult to run the business and provide information to professionals, already due dates givens are impossible, we left with no option to approach to you for Extension.

d) Extension Demand is not for us but for Taxpayer – When we are demanding Extension, it is not for us but it is for taxpayer, who don’t understand GST Law fully.

II. Government has made joke/blunder with respect to extension of due date of gst annual return and audit/reconciliation statement (Form GSTR 9 and GSTR 9c) for FY 2019-20 by specifying it upto 28th February 2021. below are the facts for your kind reference in this regard:

a) GSTN opened window for GST Annual Return (GSTR 9) for F.Y. 2019-20 on 10th Dec 2020

Facility to file annual return in Forth GSTR-9 for FY 2019-20 is now available. The Form is enabled for taxpayers whose table 8A computation has been completed. Computation of the table 8A of the said return for auto population from returns is under progress which is likely to be completed soon. Please ensure that all applicable returns of  the said year have been filed before attempting to file the said return.

b) GSTN opened window and provided excel tool, for GST Audit/Reconciliation Statement in Form GSTR 9C for F.Y. 2019-20 on 31St Dec 2020

c) GST Annual Return and Audit/Reconciliation Statement (Form GSTR 9 and GSTR 9C) for F.Y. 2019-20 was amended on 15th Oct 2020 vide Notification No 79/2020 CT dated 15th Oct 2020

d) All professionals and Taxpayers were doing day and night efforts, for compliance of filing GST Annual Return for F.Y. 2018-19 and compliance under other acts (which was extended/stopped due to Covid lockdown), upto 31st Dec 2020.

e) Due date of 28th Feb 2020, is impossible to even God, but still government came with it. During Jan 2021 and Feb 2021, almost 20-25 days will be spent by all professional in doing monthly GST Compliance and implementation of other important changes in GST and other acts. How is it possible to complete GST Annual Return work in remaining 20-25 days for lakhs of taxpayers?

f) By specifying date of 28th Feb 2021 for GSTR9 and 9C of F.Y. 2019-20, you have shown great disrespect to efforts of all professionals, demand of all associations and request of many Members of Parliament.

g) Recommendation for due date of GST Annual Return of 2019-20: We Trust, Modi Government — “Sabka Sath, Sabka Vishwas”. Kindly keep trust on our efforts and suo moto make correction to (Notification No 95/2020 CT dated impossible date of 28th Feb 2021 and make it to 31st May 2021.

III. Government has not considered sincerer request from all associations to extend GST Annual return and GST Audit/ Reconciliation statement for FY 2018­-19 for 1-2 month more:

a) Your office was kind enough to extend due date for GSTR 9 and 9C for FY 2018-19 to 31st Dec 2020, due to write petition in Bombay high Court.

b) All professionals and Taxpayers work hard to achieve due date of 31st Dec 2020 for GST, Income Tax and Companies Act. However, due to effect disruption/unavailability of staff, when all associations in India and Member of Parliament has requested for one more last Extention of GSTR 9 and 9C for F.Y. 2018-19, your office has not considered said request.

c) We failed to understand, why government don’t Extend or relief from penalty, when the demand is due to genuine reason.

d) When forms are not filed in time, professionals feels so much of stressed and overloaded.

e) Recommendation for due date of GST Annual Return of 2018-19 – We request your good office to kindly give 1-2 more last extension for GST Annual Return GSTR 9 and 9C for F.Y. 2018-19 or at least given relief from Rs 200 per day penalty

IV. Double Standard Approach of Government:

  • When there is delay from Government in issuing Notification/circular (Numerous example can be quoted — on 30th Sep 2020, Govt issued notification for applicability of E-Invoice to Exporter from 1st Oct 2020, It took government almost one year to make basic changes effective of Finance Act 2020 and issued notification finally on 22nd Dec 2020 and keeping Taxpayers/professionals in between in confusion of its applicability) or when there is delay from GSTN to make change effect on Portal ( Numerous example can be quoted — On 10th Dec 2020 and on 30th Dec 2020 GSTN provided GSTR 9/9C of FY 2019-20, ITC 04 always have issues on GST Portal, It took GSTN 1.5 years to de-link Debit Note/Credit Note on portal, when law already amended ), time is automatically extended
  • But when it comes to genuine demand of professionals and taxpayers, government don’t give respect to it. This is nothing but double standard approach.

V. Complete U- turn/Huge delay from government, still we are supporting government:

When any new law is introduced and it is not full proof, it is expected that said law will be flexible. However, this is not case of GST. Due to detection of number of GST fraud, government is making GST Law complicated and strict day by day, which hit hard to honest tax payer. GST Is supposed to be simple tax system but unfortunately it is moving toward complex hard system.Below are few incidences, where government took complete U-Turn / Huge delay from government and still we supported government:

  • Implementation of GSTR 1,2,3 postponed and then suspended
  • Implementation of GST RET 1/2/3 never saw light of the day
  • It took, government 15 month to notify GST Annual Return Form after 1st July 2017 and too, form was corrected many times after that.

VI. Humble Submission:

a) We appreciate huge efforts taken by government machinery for making GST successful and Easy Tax System, however this will not be possible without active participation and consideration of view of all Professional and Trade Bodies. We are with the Government and wish to make GST Easy Tax System and thereby making India as USD 5 Trillion Economy and World Leader.

b) Kindly keep GST little flexible and address demand of professional who are actually implementing the GST and all time to time changes

c) Kindly Extend time line for GST Annual Return GSTR9 and 9C for F.Y. 2019-20 to 315‘ May 2021 and for F.Y. 2018-19 by 1-2 more month or waive of penalty for 2018-19

d) Allow us to meet you and re-present various issue in GST and all officers of policy wing, so that we will be able to communicate is properly.

We are with Government and want government to be with us. Let make GST Successful by “Sabka Sath — Sabka Vishwas”. We are hopeful that government will understand concern explained by us in this document and will come out with positive action on urgent basis.

CC:

  1. The Chairman of Central Board of Indirect Tax and Custom, North Block, New Delhi – 110001
  2. Hon’ble GST Council Secretariat 5th Floor, Tower II, Jeevan Bharti Building, Janpath Road, Connaught Place, New Delhi-110 001
  3. The CEO, Goods and Service Tax Network, East Wing, 4th Floor, World Mark 1,Aerocity, New Delhi 110037
  4. Hon’ble State Finance Minister, Maharashtra State Mantralaya Mumbai — 400032

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