Tuesday, February 20, 2024

Know- what kind of problems are still happening after 4 year of GST

4 years of GST, know- what kind of problems are still happening to traders, revealed in the survey

Know- what kind of problems are still happening after 4 year of GST

Today is the fourth year of the biggest tax reform GST (Goods and Services Tax) implemented by the Modi government. The tax reform by the Modi government at the Center changed many of the taxes levied by the Central and State Governments into 'single tax' GST, which currently has four slabs, 5%, 12%, 18%, and 28% for various businesses.

Regular hassles and technical glitches in the implementation of GST have led to dissatisfaction among businessmen, which has resulted in problems among the people due to many intricacies of tax reforms.

In a survey conducted by Local Circle in 18,000 businesses spread across 171 districts of India, 28% of respondents expressed dissatisfaction with the tax system, while 43% said they were happy.

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The main reason for dissatisfaction is spending more time on GST compliance vs. pre-GST taxation and most people are having trouble understanding, logging, furthermore, submitting data on the GSTN site.

Compared to pre-GST, 64% of businesses say their monthly accounting costs have increased after GST while 57% of businesses also say that invoice matching between input and output is their first issue with GST.

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The survey also found that 13% of businesses experienced "refund delay". The other 13%, however, issues of "separate list need for each separate state". 5% had a problem with "TCS and TDS". 12% of businesses had no opinion. The survey received 3,004 responses to this question. Invoice matching is an area where a business is matching its output invoices and applying for input tax credit payable.

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Meanwhile, many businesses have raised the issue of dependence on suppliers, whose delay in GST compliance affects the compliance of the entire supply chain. Over the last four years, many small businesses have also raised the structural issue of paying GST for their customer invoices, while it takes customers 3-6 months to pay the invoices to large companies or government bodies in many cases. . This leads to a cash crunch for small traders.

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FAQ

What are the problems faced by GST?

The Goods and Services Tax (GST), introduced as a transformative taxation system, faces several challenges in its implementation. One prominent issue is the complexity of compliance, with businesses grappling to navigate the intricate filing procedures and varying rates across states. Additionally, technological glitches in the GST Network (GSTN) have hindered smooth online filing, leading to delays and frustrations for taxpayers. The frequent changes in GST rates and regulations also contribute to uncertainty and administrative burdens. While GST aimed at simplifying the tax structure, these challenges underscore the need for continuous refinement to realize its full potential as a transparent and efficient tax regime.

What happens if GST return is not filed for 4 years?

Failing to file Goods and Services Tax (GST) returns for four consecutive years can result in severe consequences for businesses. The accumulation of unfiled returns may lead to hefty penalties and interest charges. Non-compliance may trigger legal actions, including the cancellation of GST registration, restricting businesses from availing input tax credit. Moreover, continued non-filing could lead to prosecution and imprisonment under GST laws. Businesses are strongly advised to adhere to the filing deadlines, as prolonged non-compliance not only jeopardizes financial stability but also invites punitive measures, hindering the smooth operation of enterprises in the long run.

What are the new changes in GST 2023?

As of my last knowledge update in January 2022, I don't have specific information on the changes in GST for the year 2023. The details of any new changes to the Goods and Services Tax (GST) system would be subject to government announcements, which I may not be aware of. To get the latest and accurate information on GST changes in 2023, I recommend checking official government sources, such as the official GST portal, government press releases, or consulting with a tax professional who can provide up-to-date and accurate details on any amendments or modifications to the GST system.