28/05/2017
There are certain misconceptions being spread about the GST.
1)The first misgiving is that the dealers have to file 5 returns i.e.R1,R2,R3,R4 and R5 every month.As per the draft rules the dealer has to file 3 returns every month.Basically any indirect tax return gives the details under 3 heads i. e.sales for working out the tax liability, purchases for working out the ITC claim and tax working to find out the actual tax payable by the taxable person.Under GST, the return is subdivided into 3 parts each of which is given separate name for convenience i.e. GSTR1 for outward supply (sales),GSTR2 for inward supply (purchases)and GSTR3 for working out the tax liability. Actually the taxable person has to file GSTR1 by the 10th of the succeeding month. Automatically GSTR2 gets autopopulated and he has to make some changes to file GSTR2. The third return GSTR3 also gets autopopulated and he has to put some figures to file his third return GSTR3. Thus, it is clear that the taxable person has to fill details in only 1 return and 80 to 90 percent of the next 2 returns are autopopulated.
2)The second misconception is that the stock declared on the day preceding the appointed day is to be disposed off within 90 days i.e. by 30th September 17.The rules for transition are still not finalised This misconception is presently going viral.There is no such restriction under the GST Act or draft rules.
3)The third misconception is that all VAT related forms such as C forms, F forms etc need to be obtained by 30th September 17. There is no such condition.
4)There is misconception that the invoice matching and denial of credit to the purchaser when the supplier has not paid tax or disclosed his sales is against the interest of trade.If such credit is granted to the purchaser it would result in double whammy to the government i.e. the government would not be getting tax on sales and the government would also be granting credit of the amount which has not been deposited in the government treasury.Also as lesser amount would be coming in it's coffers, lesser amount would be used for national and social development.Also because of invoice matching dishonest taxable persons would be going out of business and their share would be taken up by honest taxable persons.
5)There is another rumour being circulated that officers can value the goods at any stage and under all circumstances.This is not true as the GST Act has granted the valuation powers to the officers under some circumstances. Normally the invoice value would be accepted if both parties are not related.
It is my sincere request not to get influenced by baseless rumours but understand the provisions of GST Act in the right spirit.
