Two months have been passed successfully after the launch of the landmark decision of Prime Minister Narendra Modi, i.e. GST. There were not many hiccups seen during this time and everything goes very smoothly. The reason could be the enterprising nature of the Indian mind that has the solutions to all the problems. In this process, the central government should also be applauded for taking the daring decision of allowing the export when the procedures are not fully set and provide clarification in a very fast manner. The process catches the race in the month of August. Despite of a great success, some process can make the GST implementation even smoother.
Making use of online processes
The filing of the GST return faces different problems from the month of July. There were some conditions in which a company could not be able to pay the return as the CFO of the company having the digital signature had resigned. Now, the new one could not sign until and unless the old CFO allows the new one to use the new signatory. The condition even gets worse when the signatory has been expired. Now, what a company can do?
The whole problems occur because the GST didn’t have much time to establish properly. Thus, less time is there for them to stabilize its software application. Another reason is continuously changing in the rules and regulation of the government.
Does the letter of undertaking is really required?
The concept of taking the bond and letter of undertaking from the excise regime is taken by the GST law. The previous tax regime, i.e. VAT does not have this kind of proposal. Even for the export of the services, one requires a bond to be made. Frankly speaking, this concept is very hard to monitor. In spite of this, the government should have made a bond so as to secure the revenue.
Way bills – Really?
In actual way bills are required for the movement of all the goods across the states. It is very important to monitor the movement of goods, which finally come into the market. Way Bills were introduced for controlling the imports into a state and finally guarantees that all the coming goods are recorded and accounted. Now, the scenario has been totally changed. The GSTN monitor all the transactions and inter-state movements. It also creates a way to make sure that the supplier pays the tax before the credit is granted. Do we really need Way bills?
Taking the reverse charges
This concept applies when you purchase the good from an unregistered person. It is considered as an admirable move in order to protect the sincere tax payer. This is helpful in bringing an additional advantage of the input credit and makes the people more competitive.
To sum up, if we see the overall changes in the first two months, it can clearly be seen that the whole tax regime has been changed, but with the positive effects. Still, the work is going on for the amendment of the GST to bring the maximum benefit of the business.