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GST – Implementation from July 1, 2017 – How to tackle the reality of situation with the dealers with limited facilities?

June 11, 2017

GST – Implementation from July 1, 2017 – How to tackle the reality of situation with the dealers with limited facilities?

GST - Ideal, but what is implemented

The Government may have to be soft with the dealers, as they are bound to commit mistakes and violate provisions of GST Act and Rules[1]: In the implementation of GST covering crores of dealers of various transactions, many assumptions and presumptions have been made, as if, all would be sitting at computers and handling with their commercial dealings only on-line always. The Government has not perhaps, realized the digital gap existing between the big and small taxpayers under the GST regime.

  1. The powerful federal indirect tax body, the Goods and Services Tax (GST) Council, would instruct field officers at the central and state levels to be lenient with traders for procedural lapses in the first year of implementation of the new indirect tax regime from 1 July, 2017[2].
  2. There is a confusion about the jurisdiction of the dealers and as well as the law-implementing officers. This confusion prevails between the Central and the State and also amomh themselves internally.
  3. In the first year they have to handhold them rather than penalize them for procedural infractions. Everyone in the council is sensitive about it. Major offences such as clearing of goods without invoices, however, is a different matter.
  4. The decision comes in the wake of apprehensions of the trade and business community about an anti-profiteering provision in the GST law intended to be a deterrent against not passing on the benefits of any reduced indirect tax liability to the ultimate consumer.
  5. The Confederation of All India Traders, a traders’ body with 60 million members, said in a representation to PM on 8 June, 2017 that a period of nine months beginning 1 July should be declared a transition period [up to 31-03-2018] during which traders will be given immunity from prosecution for procedural lapses.
  6. While businesses and large traders will be prepared for the GST roll-out with their IT systems, small traders, especially those in villages and remote areas, may take time to become part of the GST network on account of lack of awareness and infrastructure constraints.
  7. As everyone imagines, the internet connection and related issues are going to create many practical probles, coupled with frequent power cuts at rural and village areas.
  8. Another official in the government, who also spoke on condition of anonymity, said that the last point of sale—trader to consumer—in villages has always been the weakest link in the state-level value-added tax system.
  9. Important issues – addressing concerns relating to tax rates brought up by the industry and finalizing how the anti-profiteering mechanism, “advance ruling” and search and arrests, etc. Advance ruling is a facility available for taxpayers to get an idea of what the tax liability on certain transactions will be in advance.

GST - SSI has to file 37 instead of 13 returns

SSI has to file 37 returns instead of 13; if they have units in more than one state, the returns increase accordingly[3]: A small­scale manufacturing company with operations in only one state will have to file a minimum of 37 returns instead of the current 13 once the goods and services tax (GST) goes live from July 1, 2017 increasing work for industry, accountants and banks, according to an IndiaSpend analysis. With the deadline for the GST less than a month away, finance professionals, banks and industry seem unprepared for the challenges of implementing the one nation­one tax idea, work towards which began 13 years ago. “The entire ecosystem needs to be changed to accept GST,” K. Raghu, former president, Institute of Chartered Accountants of India, told IndiaSpend. “An ideal date for implementation would be September 1.” The Indian Banks Association has informed a parliamentary panel that their members were unprepared to implement the new indirect tax regime. “Everything will now be online and will need to be updated regularly. A business will have to file 37 returns in a year (three returns per month and one annual return) per state,” the Economic Times reported on June 5, 2017.

GSTN - portal in demand

Business in three states means, he has to file 3 x 37 = 111 returns per annum[4]: “If it does business from offices in more than one state, the number of returns will go up accordingly. A business with offices in three states will have to file 111 tax returns in a year.” With the government announcing GST for four tax rates ­­ 5, 12, 18 and 28 per cent ­­ industry will face implementation challenges that include system upgrades, manpower training and understanding new taxes. Every transaction ­­ sale or purchase ­­ will now have to be recorded online to benefit from the tax paid earlier India is implementing a dual GST with the Centre and states together levying it on a common tax base. “The GST to be levied by the centre on intra­state supply of goods and/or services would be called the Central GST (CGST) and that to be levied by the states would be called the State GST (SGST),” according to the FAQs published by the Central Board of Excise and Customs (CBEC), the central body of indirect taxes. “Similarly, Integrated GST (IGST) will be levied and administered by centre on every inter­state supply of goods and services.” A dual GST adheres to the constitutional requirement of fiscal federalism, since both the Centre and states have the powers to levy and collect taxes. “The central GST and the state GST would be levied simultaneously on every transaction of supply of goods and services except the exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits,” the CBEC FAQ noted.

GST opposed or supported

Meghalaya, Punjab, Tamil Nadu, Kerala, Karnataka, Jammu and Kashmir and West Bengal – have not passed GST[5]: While 24 states have passed state GST acts, seven have not ­ as yet. They are: Meghalaya, Punjab, Tamil Nadu, Kerala, Karnataka, Jammu and Kashmir and West Bengal. While the location of the supplier and the customer within the country is immaterial for the purpose of CGST, SGST would be charged only when the supplier and the customer are within the state. An illustration from the FAQ published by the government: Suppose the CGST rate is 10 per cent and the SGST is 10 per cent. When a wholesale steel dealer in Uttar Pradesh supplies bars and rods to a construction company within the state for, say, Rs 100, the dealer would charge CGST of Rs 10 and SGST of Rs 10, in addition to the basic price of the goods. The wholesaler would be required to deposit the CGST into a central government account and the SGST into the account of the state government. “Of course, he need not actually pay Rs 20 (Rs 10 + Rs 10) in cash, as he would be entitled to set­off this liability against CGST or SGST paid on his purchases (say, inputs),” said the FAQ This is where implementation challenges arise, as former ICWAI president Raghu explained. Every invoice from buyers and sellers must be entered in the GST system correctly to ensure that benefits accrue down the chain. “We have a system today across a majority of small units where an accountant comes (in) once a month, makes vouchers and inputs details for taxes,” said Raghu. “That will have to end now because we are moving to an online, almost real­time system that will need a lot of manpower.” The finance industry is ready by training its professionals, said Raghu, who predicted many job opportunities over the next 5­6 years. But, as he added, it would take at least 12 to 18 months for the system to “settle down”. “I do see a lot of CAs and other finance professionals being trained for indirect taxes in the coming years,” he said.

GST - Ideal, but what is implemented-NDA-UPA

Industry and Banks are not ready for GST implementation[6]: India’s industry and its banking system will have to change systems, train personnel and accept the extra workload for the new taxation system. The banking system has clearly said it is not yet ready. Industry is ambivalent. “Nearly 50 per cent of Indian businesses are not aware of the changes that GST will usher in,” Bharat Goenka, Managing Director, Tally Solutions, was quoted as saying in the Economic Times on June 5. Tally accounting software is widely used by Indian companies. The company is waiting for the GST rules to be finalised, so that it can roll out its GST software for Indian companies. A senior official of Federation of the Indian Chambers of Commerce and Industry (FICCI), requesting anonymity because the launch date was close, said GST was “now a fact”, and industry was trying to adapt. FICCI has been conducting awareness sessions among industry verticals to help understand the new structure, he added The industrial sector, especially the services sector, is waiting for more clarity on tax rates, processes and the time frame for the systems to settle down. “What we still don’t know is which tax slab we fall in,” a marine service provider operating in Goa told IndiaSpend, on condition of anonymity. “While it is good that the taxation system will be streamlined and we will not have to deal with multiple tax payments like excise, service tax and value added tax, we still don’t know how much time it will take for everybody to be on board.” (In arrangement with IndiaSpend.org, a data­driven, non­profit, public interest journalism platform. The views expressed are those of IndiaSpend. Feedback at respond@indiaspend.org).

© Vedaprakash

11-06-2017

GST ready for launch - 03_08_2016_001_060

[1] Livemint.com, Govt may be lenient with traders on procedural lapses in GST’s first year, Last Modified: Sat, Jun 10 2017. 12 51 AM IST.

[2] http://www.livemint.com/Politics/PMFLgTOxEezhEPIt9FEqgL/Govt-may-be-lenient-with-traders-on-procedural-lapses-in-GST.html

[3] http://www.hindustantimes.com/business-news/businessman-or-professional-you-may-need-to-fill-37-forms-to-be-gst-compliant/story-DI8IOTQi5qS0c20PkDoTNO.html

[4] http://navbharattimes.indiatimes.com/business/business-news/37-returns-instead-of-13-one-of-the-many-challenges-threatening-gst-rollout/articleshow/59085127.cms

[5] http://economictimes.indiatimes.com/news/economy/policy/37-returns-instead-of-13-one-of-the-many-challenges-threatening-gst-rollout/articleshow/59082648.cms

[6] Economics Times, 37 returns instead of 13: One of the many challenges threatening GST rollout, BY IANS | JUN 10, 2017, 02.33 PM IST.

 

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The 10th National Conference of ABISY was held at Mysore from December 24th to 26th 2015 on “Women in Indian culture: From ancient to Modern” (2).

December 29, 2015

The 10th National Conference of ABISY was held at Mysore from December 24th to 26th 2015 on “Women in Indian culture: From ancient to Modern” (2).

1.Shri-Vajubhai-Rudabhai-Vala-Governor-of-Karnataka-inaugurated10th-National-Conference-on-Woman-in-Indian-Culture-through-the-Ages12.18 am (24-12-2015) Senate Hall, Mysuru: M. A. Jayashree sang an inagural song, read “Sankalpa” for the Conference and then, all stood up to sing Janaganamana!

The governors and VIPs arrived and the inagural ritual started.

Those who were on the Dias:

  1. Balamukund.
  2. Prof K. S. Rangappa, VC, University of Mysuru was the Chief Gust of Honour
  3. HE Vajubhai Vala Karnataka
  4. HE Mridula Sihna Goa
  5. Sri Suresh Joshi Bhayyaji, Sarkaryavah, RSS was the guest speaker.
  6. Satish Mittal.
  7. Tontadarya, ex-MLC

ABISY - inagural function Suresh Joshi Bhayyaji, Sarkaryavah, RSS was the guest speakerThe speech of Suresh Bhaiyyaji Joshi: 12.25 pm: The 10th national conference of the Akhil Bharatiya Itihasa Sankalana Yojana began here on Thursday with RSS general secretary Suresh Bhaiyyaji Joshi finding fault with the tradition of confining women to household work[1]. Talking in Hindi, he said, family system was the root of the country, that should be protected by ensuring education, health and safety of womenfolk. Delineating on the need to set right the history of the country, Joshi said, the samiti has taken up many works to introduce the core strength of the country to the people. “While Aryans were indigenous people of India, Britishers falsely propagated that they came from outside. The truth was established after researching deep into the issue. The origin of Sindhu-Saraswati River has been traced”, added Joshi[2]. Addressing the gathering at the inaugural of the conference titled ‘Woman in Indian culture through the ages’ by the yojana, Mr. Joshi said there was a need for women to emerge from the confines of their homes and assume roles in industry, education, politics and other spheres of life. If a country were to achieve progress economically, socially and geographically, there was a need to empower women, he said emphasising the importance of creating awareness on the issue. He also said women should populate not only the army, but also the air force and navy. While favouring bringing Scheduled Castes, Scheduled Tribes and various adivasis into the mainstream, who he said “may be weak, but not unwise”, Mr. Joshi said that issues relating to rural and tribal women, who comprise 70 per cent of women, should be brought on the agenda of the discussions. He called for the need to establish a just society on the basis of equality that is free from western influence. Mr. Joshi emphasised the need to present correct history. Research helped bust the myth that Aryans had invaded India before the Mughals and the British. That Aryans were not foreigners, but were locals, had been proved by scientific evidence, he claimed[3].

Goa Governor Mridula Sinha speaking at the ABISYs 10th national conference in Mysuru on Thursday 24-12-2015-PHOTO- M.A. SRIRAMWhat HE Mridula Sihna Goa spoke: 12.50 to 1.15 pm: HE Mridula Sihna Goa spoke in Hindi. Referring to the practice among a section of the women to avoid bearing children, Goa Governor Mridula Sinha described motherhood as nature’s best gift to a woman[4]. Speaking after inaugurating the national conference organised by the Akhila Bharatiya Itihasa Sankalana Yojana here on Thursday, Ms. Sinha said that she still advises her daughter against forgetting to serve her husband his food even if she does not have the time to cook[5]. “But, never should a woman go hungry,” she said. Also, she went on to say that it was important for men to discuss women’s issues[6]…………the three-day meet should discuss the relevance of nature, culture and decency as they are inter-connected with each other. While nature remains intact after being created, the Indian culture is largely dependent on the nature.Describing motherhood as god’s gift to womenfolk, Sinha regretted that new-age women were avoiding motherhood, that was once protected and preserved, equally contributing to the welfare of the society[7].

6.Shri-Vajubhai-Rudabhai-Vala-Governor-of-Karnataka-inaugurated10th-National-Conference-on-Woman-in-Indian-Culture-through-the-AgesHE Vajubhai Vala spoken on the conference: 1.16 to 1.23 pm: HE Vajubhai Vala Karnataka spoke in Hindi. Governor Vajubhai Vala, who presided over the event, said that women, who play a strong role inside their houses, should display their strength even outside. Though he regretted the delay in the passage of the Women’s Reservation Bill that seeks to set aside 33 per cent of the seats in Parliament and State Assemblies, Mr. Vala said that many women are now occupying powerful posts in the bureaucracy. ….Women nowadays have taken a lead in many fields, with 70 per cent women bagging top honours on the academic front[8]. Most importantly, it’s women who inculcate culture among children. Be it any women, men should ensure their safety and security[9].On the role of women in politics, Vala said, there are examples of women leaders occupying top posts like president and prime minister in India, while in western countries it is more common to see women leaders occupying key positions. Thus, the entire inagural session was carried on in Hindi. After lunch, the paper-reading session started in different rooms of the building situated next to library. The Kannda and Sanskrit sessions were arranged seperately, whereas, the Hindi and English papers were mixed together and the paper-presenters, particularly, those who presented in English could find difficult, as their papers were interpersed between many Hindi papers.

3.Shri-Vajubhai-Rudabhai-Vala-Governor-of-Karnataka-inaugurated10th-National-Conference-on-Woman-in-Indian-Culture-through-the-Ages25-12-2015 (Friday): Paper reading session. Most of the papers were in Hindi and the delegates who did not know Hindi could not understand what was presented. They felt they missed important information, data and information that might have been contained in such presentation. And many papers were in the form of “articles” and not of the nature of “reseach paper”. The emphasis made the title and the sub-themes made the presenters to repeat, duplicate and even rehash the same points, aspects and subject matter. Of course, the “cut and paste” methodology was also noted and pointed out by the organizers themselves.

2.30 to 4.40 pm: General Body Meeting of ABISY.

5.00 to 7.40 pm: Visit to Mysuru palace lightning.

ABISY 10th National Conference inagurated by Mysuru-Goa Governors-Deccan Herald26-12-2015 (Saturday): Paper reading session continued with the same conditions pointed out above. Had the papers been scrutinized properly, such things could not have been occurred. The corrections, modifications and rewriting could have been intimated so that the quality of paper presentation could have been maintained. Such exercise would be useful and educative for budding researchers in paper preparation and presentation. Women paper presenters had not addressed the issues, problems faced by the Indian women. Some women appeared to have felt that “they are happy” and therefore, other “women are also happy”.  Most of the woman paper presenters had not been aware of the current issues dealt with in India in different spheres and thus, papers had been of “glorification of the past” nature. Even in the globalization context also, though only few papers were presented, they had been in a dilemma as to whether to point out the positive aspects or the negative aspects that affect the Indian society.

ABISY - paper presentation, discussion going onWhy papers deviated much away from the theme taken for the conference: The hospitality had been excellent, but, unfortunately, the academic proceedings had been marred by some inherent factors. The subject matter of the whole proceedings was to concentrate on women-issues focussing on the current relating to ancient moral values. The first circular declared that the central subject proposed was “Women in Indian culture: From ancient to present” adding that research papers were also invited on the following topics such as –

  1. Historiography
  2. History in the Puranas
  3. Vaavasi (Tribal) history
  4. District history
  5. Miscellaneous (Archaeology, inscriptions, numismatics, art and architectue, spread of Indian culture abroad etc)

But, the Second circular still enlarged the topics deviating from the women and women-issues givilng the list as follows:

  1. Origin of Indian culture and women
  2. Women in Saraswati-Sidhu civilization.
  3. Women in epic-age
  4. Women in Puranas
  5. Women in Jaina-Buddhist period.
  6. Women in Mauryan and post-Mauryan period.
  7. Women in Gupta and post-Gupta period
  8. Women depicted in indian art / performing art, paintings, wooden, terracota, stone and metallic art / folklore, music, dance etc.
  9. Women in folk tradition and culture
  10. Women in medieval age.
  11. Role of women in freedom struggle
  12. Globalization and Indian women

Other general topics are also as follow:

  1. Historiography
  2. History in the Puranas
  3. Vaavasi (Tribal) history
  4. Regional history

Other Academic subjects:

Archaeology, Epigraphy, numismatics, art and architectue, Indian culture.

The final circular dated 16-10-2015 repeated the above. Thus, the circulars deviated from the theme of the conference, with the diverged subjects and digressing from the idea of the subject matter conceived. Accordingly, the paper-presenters, particularly, the majority of the casual-types had taken full liberty to take any subject and came with “hurried-haste-rehassed” stuff that was criticized by the organizers and the sectional presidents. As they seperated Sanskrit and Kannda paper presentation, Hindi paper presentation or the English paper presentation could have been held seperately. As most of the paper presenters did not follow any “style-sheet” and research methodology, they can be taught about. Incidentally, as ABISY and BISSs have been working on “history writing and re-writing”, they should conduct some workshop for their “paper-presenters” as to how to prepare a reasearch paper. They should be asked to attend IHC, SIHC etc., to listen to historians, interact with others and get experience.

Valedictory function: The valedictory funstion was held at the A.V. Hall without any lack lusture and the same speakers again dwelt upon the same issues in the same manner. Again, the entire ritual was in Hindi. Instead of getting opinion from the delegates about the academic conduct of the conference, it was wound up in a much routine manner. When a particular person was speaking “over-enthusiastically”, the audience started clapping several times. Instead of getting the hint, he continued to talk with spirit provoking them to clap again. There was no indication as to when the 11th National Conference would be held after three years in 2018.

© Vedaprakash

29-12-2015

[1] Laiq A. Khan, Don’t restrict women to household word, The Hindu, Mysuru, December 25, 2015, Updated: December 25, 2015 05:46 IST

[2] http://www.deccanherald.com/content/519415/men-should-empower-women-says8200governor.html

[3] http://www.thehindu.com/news/national/karnataka/dont-restrict-women-to-household-work/article8028161.ece

[4] http://newsnirantara.in/?p=6305

[5] Star of Mysore online, Goa Guv opens Women’s Meet, December 25, 2015; http://www.starofmysore.com/searchinfo.asp?search1=45313&search2=newsheadlines

[6] http://www.thehindu.com/news/national/karnataka/dont-restrict-women-to-household-work/article8028161.ece

[7] http://www.deccanherald.com/content/519415/men-should-empower-women-says8200governor.html

[8] Deccan Herald, Men should empower women, saysGovernor, Mysuru: Dec 25, 2015, DHNS.

[9] http://www.deccanherald.com/content/519415/men-should-empower-women-says8200governor.html