Karnataka State Tax Practitioners Association (R) has submitted a request letter to Smt. Nirmala Sitharaman, Honourable Minister of Finance, Government of India, New Delhi on 14th August, 2023.
The letter is regarding a request for providing an amnesty to all the GST assessment for the years 2017-18 to 2019-20 so that all interest and penalties will not be levied and rights of the assessee to seamless ITC is available.
The content of the letter is reproduced as below –
GST Act was introduced in the year 2017 as a revolution of indirect tax since independence, on principles of ONE NATION ONE TAX. As it is a new law it takes some time to all the assesses who are new to the tax system to understand all the intricacies and follow the same flawlessly. Hence breathing time for all the stake holders is a demand which is within nature justice and principles.
Further the Honourable Government had promised that in the earlier years of GST they will consider the fact that this is going to be a new law and hence a very lenient view will be taken for the mistakes of the assesses.
Further the Government had promised seamless flow of Input Tax credit throughout the country to all the assesses.
Now it is time for the Government to stand with the assesses who are under threat of loss of ITC because of some suppliers who have not filed GSTR-1. As promised the GSTN did not provide the opportunity to the purchases to file GSTR2. Hence, the assesses are now sandwiched between the erring supplier and Govt. officers who are insisting that all the purchases must be reflected in GSTR-2A. This they are doing in spite of the Circular No. 123/42/2019-GST dated 11.11.2019. which is binding on them and against which they cannot and should not go and proposing to levy tax penalty and interest. The pleas of the assesses that all their purchases have original invoices, all payment are made by cheques, inventory accounts are maintained and they are to give ITC credit have fallen in deaf years.
Inspite of issue of Notification No. 183 dated 27.12.2022 many dealers are not able to get the certificates as the more than 6 years have passes and parties are cooperating and not issuing certificates.
As there is no facility for revising the GSTR-3B some of the assesses who have without proper knowledge and experience have filed the monthly returns incorrectly are now have to pay heavy prices for the ignorance.
In view of the above facts which are all over the India, we the members of the Karnataka Tax Practitioners Association, Bengaluru appeal to your hounour to please
1. Provide one time opportunity to all the dealers to get the ITC if they are possessing the proper and original invoice.
2. Instruct all the officers to not to insist on all the purchases to be on the list of GSTR-2A and adhere to the Circular no. 123/42/2019-DT dated 11.11.2019.
3. Waive interest and penalties for three years i.e. for 2017-18, 18-19 and 19-20.
4. To stop taking the cases for audit for the year 2017-18 to 19-20 and accept all the returns for those years.
5. Allow ITC in all cases where is the registration cancellation is revoked and restored.
6. All the ITC wherein sec 16(4) of CGST Act, 2017 is violated the light of the Andhra Pradesh High Court decision which has gone against the assesses.
We are sure your honour will consider our request positively and take a positive step towards reducing the problems of all assesses across India.
1. Implement QRQP Scheme for small RTP who are not getting supplies amount in time.
2. Reduce interest rate to 12% for bonafide registered tax persons with upper cap equal to tax payable.
3. Late fees for
Nil return Rs. 10/- per day Upper cap 1000/-
Tax return 20/- per day with Upper cap 2000/-
4. One Time Karasamadhana Scheme under GST to wave of interest, penalty and late fee
5. Three years time line to utilise ITC and claim refund.
6. One revision option before subsequent period return.
7. Mandate E invoice or Eway bill for every transactions as the case may be to get seamless flow of ITC with Real time.
8. E-Invoice or E Way bill to be Enabled to get by SMS for paper less transactions by generating UQC.
9. Rate rationalisation based on
i. value example footwear, rent etc.
< 500/- 1% , <1000 – 10%
<5000/- 20%, > 5000/- – 30%
ii. Utility
Essential -1%, non-essential -10%
Luxury -20%, Pollutants, Unhealthy – 30%
10. RCM to b minimised to specified Sector
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