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Context
The Goods and Services Tax Network (GSTN) is bracing itself for a “big challenge” set to emerge in the coming weeks as a ministerial panel Wednesday ruled out any further extension for filing GSTR 1 returns by traders. As it has been extended three to four times.
Sushil Kumar Modi, head of the five-member panel constituted to resolve the technology glitches being faced by traders on the network.
Challenges
- GSTR 1 is outward and sales and GSTR 2 is purchase. It is auto-populated. Then there will be a matching of invoices of GSTR 1 and 2 which is a challenge
- In GSTN, more than 90 lakh of taxpayers are registered but 90% of revenue is coming only from four lakh taxpayers.
- For the month of July, 52 lakh dealers have filed the returns. But the detailed GSTR 1 has been filed by only 33 lakh, 43,000 dealers.
GSTR deadlines
The GST Council, in its September 16 meeting, had fixed
- October 10 as the deadline for GSTR 1 relating to supplies made,
- October 31 for GSTR 2 relating to purchases, and
- November 10 for GSTR 3, a comprehensive one for the month of July.
Way out provided by panel
- The tax network system developed by Infosys is capable to handle a large number of returns.
- Infosys would send a team of qualified technicians to coordinate with the State tax administration to speed up and resolve technology issues
- There are 27 States which constitute the Model 2 States. Model 1 States, like Karnataka, have developed their own backend. Model 2 States have had a problem creating the backend. Last meeting, we requested for developing a software for Model 2 States.
- Now everything is automated. So, there will be no or minimum human intervention.
