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 linked “ Data 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
· 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 ? “
Could following help to implement my suggestion ?
20 June 2017
www.hemenparekh.in / blogs