Nightmare of GST ?

HINDUSTAN TIMES  ( 01 May 2017 ) carries following news report :

“ You may have to fill 37 forms a year to be GST compliant “

GSTR

The tax returns under GST will be 37 in a year for a company; GSTR-1, GSTR-2 and GSTR-3—for each month, and one annual return. For a company with operations in 20 states, it means 740 annual returns.

The finance ministry officials said they are trying to further simplify the process so that small businesses are not overburdened with filing returns.

Experts point out the huge reporting requirement under GST that has be handled and understood by taxpayers, be it businessmen or professionals. This is in contrast to the half-yearly returns mandated under the present service tax regime.

TRACKING TRANSACTIONS:

A businessman registered under GST, will have to upload all sales and stock transfer details on the GSTN. Every transaction will also have to invoiced.

COMPLIANCE:

Those paying tax under GST, will have to make investments to ensure compliance. Taxpayers will have to raise invoices and bills in the correct format laid down by the GSTN. E-way bills will have to be generated for every stock movement. Debit and credit notes will also have to be maintained along with books of accounts in the approved format.

Can this nightmare be turned into a day-dream ?

It is not merely , a question of  “ can “  !

It is a question of  “ how ? “

By implementing my following blog ( earlier sent as email to NDA Ministers ) :

Wednesday, 7 December 2016

 

 

From UPI to UTI

Of late, UPI ( Unified Payment Interface ) is talk of the town

It is high time , we also start talking about UTI ( Unified Transaction Interface )

Without naming it as such , Income Tax Department has already started compiling and analyzing , high value sales / purchase transactions , to figure out instances of suspected tax evasions

IT recently sent out notices ( Emails ? ) to some 7 lakh parties involved in 14 lakh high value non-PAN transactions, asking them to furnish their PAN details

Under several laws / rules / regulations , IT requires various agencies / entities / individuals , to furnish a lot of information whenever money changes hands

Following are a few examples :

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Who must report ?   :  Banks / NBFC / Post offices

What  ?                   :  Time Deposits ( if totaling Rs 10 L or more in a year )

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Who must report ?  :  Companies / Mutual Funds

What  ?                  :  Purchase of shares / Mutual Fund units (if Rs 10 L or more in a year )

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Who must report ?  :  Professionals / Businessmen

What  ?                  :  Cash receipts exceeding Rs 2 L from any person for sale of

                                goods / services

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Who must report ?  :  Jewellers

What  ?                  :  TCS ( Tax collected at Source ) for sale of bullion exceeding Rs 2 L or

                                jewellery exceeding Rs 5 L in cash

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Who must report ?  :  Any Seller

What  ?                  :  Sale of any other Goods / Service exceeding Rs 2 L

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Who must report  ?  :  Property Buyers

What ?                    :  TDS ( Tax deducted at Source ) for purchase of property with a value

                                 exceeding Rs 50 L ( to be reported before paying the seller )

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Who must report ?  :  Person making any payment

What ?                   :  Lottery / Game winning prizes exceeding Rs 10,000

                                ( to be reported before paying the winner )

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Who must report ?  :  Buyer

What  ?                 :  Quote PAN while buying / paying / depositing ,

                               *  Property exceeding Rs 10 L

                               *  One time payment at hotels / restaurants, exceeding Rs 25,000

                               *  Depositing cash exceeding Rs 50,000 in a day with a bank

                               *  Purchase of Foreign Currency exceeding Rs 50,000

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Who must report ?  :  Seller

What  ?                  :  Verify PAN and furnish a statement to IT department on

                                transactions

                                beyond a certain threshold

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Who must report ?  :  Banks / Mutual Funds / Companies / Registrars

What  ?                  :  Annual Information Report ( AIR ) on high value 

                                 transactions

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{  Source  :  Maulik Madhu / Business Line / 05 Dec / Government on Data Trail  }

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Considering the effort involved in compiling / collating and analyzing such a massive data , coming in continuously from lakhs of sources , it was natural for the IT department to make use of computer based BIG DATA analytics , to narrow down those suspicious cases

In our goal to make India , a LESS CASH  economy , UPI / AEPS ( Aadhar Enabled Payment System ) , was an important  FIRST step

But UPI / AEPS , just does NOT cover those sale / purchase transactions which take place using Credit / Debit cards and private brand Mobile Wallets !

To ensure that these transactions too get into the database of the Income Tax department , I suggest following :

STEP  #  2

All other PRIVATE brand Mobile Wallets ( Paytm / MobiQuick / ItzCash / FreeCharge etc ), must be integrated with UPI, so that the sale / purchase TRANSACTION DATA generated through use of such private mobile wallets too gets integrated into the COMMON database of the Income Tax department

STEP  #  3

All Card-Swipe / PoS machines must be UPI / AEPS compliant, so that all sale / purchase TRANSACTION DATA generated through use of all CREDIT / DEBIT cards, too gets integrated into that COMMON database of IT Dept

STEP  #  4

All sale / purchase transactions by all other Electronic Fund Transfer Network ( EFTN ), too must be also transmitted / deposited , into this COMMON DATABASE of TRANSACTIONS

IN  NUT-SHELL  :

All sale / purchase transactions of any kind ( goods or services ) , MUST all get into a COMMON / CENTRAL database , through introduction of a UTI ( Unified Transaction Interface )

UPI + UTI = " Less Cash " + " Less Evasion " + " Less Black "

I request Shri Arun Jaitley-ji to consider my suggestion

02  May  2017

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