Monday, 19 June 2017

BHIM : Can You tango with GST ?



In another ten days , GST will roll out across India on July 01



Businesses / Industries / Experts / Tax Consultants / Politicians and even 80+ lakh tax assesses are worried to death about possible disruption to businesses



Government officers do not deny that there might be a chaos , considering that nothing like this reform has ever been attempted in any other country, on this scale



ASSOCHAM and others , have requested postponement of the roll out date



As per news reports , some 67 lakh business tax payers have already “ Registered “ on GSTN portal



Big companies , buying goods / services from small companies, are bringing pressure on these suppliers to get registered or else the buying companies will stop buying and cancel pending orders



This is because , the big buying companies will have to fork out 28 % GST , without getting any “ Input Credit “ if their small suppliers are not registered !



This is a good pressure tactic for obtaining quick compliance !



Hopefully, most problems will get sorted out in 6 months , with the Government officers and the GST Council responding to each problem , as it surfaces



One major issue is the number of :


·         Daily invoices to be uploaded ( could be 500 for a hotel ? )

·          
·         GSTR 1-2-3B, Monthly returns to be filed ( could be hundreds ? )

·          
Whereas this exercise cannot be avoided for ALL types of assesses , I think it could be avoided for “ Payment Transactions “ which get made using Mobile Wallet App – BHIM V 4.0 ( Voice Activated payments )



In BHIM 4.0 , I have suggested incorporating a feature for deduction and deposition of applicable GST , into concerned account automatically !



And if BHIM V 4.0 , can deduct / deposit GST automatically / instantaneously, there is no ( technical ) reason why it cannot , also upload the relevant INVOICE pertaining to each payment and also upload those RETURNS as per schedule, on GSTN portal  !



This is possible since Aadhar Number ( ID ) is now linked to almost all of the following databases , currently being maintained by different government agencies / private concerns :



·         Bank Accounts ( from Dec 2017 ) / Jan Dhan Accounts


·         PAN ( Corporate and Individual Tax Payers )


·         Registrar of Companies / MSME Ministry


·         RTO of different States ( For Road Tax / Vehicle Tax )


·         Municipalities ( for Property Tax )


·         GSTN Portal


·         IT department / Sales Tax Department


·         Mobile Wallet Companies / Credit – Debit card Issuers


·         Excise Department / Customs Department


·         Police Department / Labour Department


·         NSSO / Election Commission ( Voter Identification )


·         A whole host of agencies



It is only a matter of time before these agencies / departments :


·         Enable Aadhar linkedData Exchange “ between these agencies


·         Enable total “ Synchronization “ of their departmental data bases


·         Agree to dump all data collected by them into a CENTRAL DATA BASE



BENEFITS :


·         Enormous saving of time / effort on part of small establishments ( retailers / self employed ) who accept payment using BHIM V 4.0



IMPLICATION FOR BHIM V 4.0 :


·         If BHIM 4.0 can save them the hassle of daily uploading of invoices , millions of small retailers / self-employed would use ONLY BHIM V 4.0 – and no other mobile wallets !



IS  THIS  POSSIBLE  ?


·         Correct question should be : “ When can BHIM V 4.0 , with feature to automatically upload invoices / GST returns , be launched ? “



HINT :


Could following help to implement my suggestion ?




·         https://www.digio.in/


·         www.GupShup.com





I SEE NO REASON WHY BHIM CANNOT TANGO WITH GST  !




20  June  2017








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