Push for inclusion Pak must mend its ways

The Central Board of Excise and Customs has recently released 11 goods and services tax (GST) return forms for taxpayers to be uploaded every month. On an average, a taxpayer who has two registrations — one for the principal place of business, another for its branch — has to file 74 returns annually, once the GST is rolled out. This will escalate compliance costs for business units.

Even the taxpayer making only intrastate supplies and whose annual turnover is more than ~50 lakh will be required to file five GST returns in addition to tax returns, according to other applicable laws.

In such a situation, GST will be amenable only for big players and wash out the small trader who is not equipped to deal with online systems. Most of the returns such as GSTR-2, GSTR-3 and GSTR-9 depend on the data furnished in GSTR-1. This would lead to issues of mismatch and difficulties in reconciling the data.

The business unit could be at ease only when its entire supply chain — right from vendor to consumer — is reconciled, the chances of which happening are practically nil. Differences on account of depletion of stock, delay in payment, loss during transit, spoilage, etc are part and parcel of every business. This leads to discrepancies in bookkeeping of accounts. In such a case only the business units that have ERPs such as SAP can survive.

The GST Network (GSTN) should maintain on a real-time basis the liability, credit and cash ledger of each registration granted under the GST Act. The taxpayer can reconcile his tax liabilities from these ledgers and comply with the Act. But asking small traders, who are not even equipped with the latest technology, to remain updated with GSTN is unimaginable.

The government could appoint volunteers and train them to help small business units. GST canopies with trained staff should be set up at different spots where small businesses can easily approach them without hampering their daily business activities.

Setting up GST facilitation centres at various parts of the city will not serve the purpose — traders know the ramifications of losing a day's work for filing returns. If the government really wants to bring them on board, it should reach out to them, not the other way round. Small players should get a fair chance to remain in the competition.

Keshav R Garg Chandigarh With reference to Archis Mohan’s report, “India to boycott SAARC meet, review MFN status to Pak” (September 28), the Narendra Modi government seems to be engaged in a full-scale diplomatic war trying to isolate Pakistan in the international arena.

Boycotting the SAARC summit was a tough diplomatic manoeuvre. Now the derailment of the summit due to boycott by some other member countries, too, lends credence to India’s longstanding claim that Pakistan has nefarious designs on the internal affairs of its neighbours. The boycott sends a clear message: it’s not just India that is facing the brunt of cross-border terrorism from Pakistan.

Pakistan is the only country that inhibits the South Asian region from achieving its true economic and political potential. It’s high time for SAARC member states to adopt a joint resolution condemning the activities of Pakistan. If Pakistan does not mend its ways, it must be stripped of its SAARC membership.

Gaurav Singhal Rewari