Finally, the first Goods and Services Tax (GSTR-1) return of July was filed on October 10. It was due in July, soon after the implementation of GST on July 1 this year, but the Union government extended the dates twice, realising that there were several glitches in the GST Network (GSTN). In fact this time gap helped the assessees to file their returns in the new GST regime after the abolition of the Value Added Tax (VAT) system which came into force in 2002.

What is alarming is that even after improvement in the filing of returns and some minor improvement in the GSTN, in GSTR-1, Goa registered only 62% filing but the exact revenue collected could not be deciphered yet as it can only be calculated after the filing of 3G return for the month of September which is due on October 20. 

“In Goa, out of the total registered assessees, about 62 per cent could file their GSTR-1 return. About 10 per cent could not file due to technical glitches in the system. Even then, we are hopeful and confident that Goa will be doing much better in compliance. We will get the figures of actual revenue only after 3G returns are filed on October 20,” said the Commissioner of Commercial Taxes in Goa, Dipak Bhandare.

Another issue which the traders across the board are feeling is that there is ‘no second chance’ for any trader to file their returns if they missed date due to any issues, whether due to bad network of any technical issue leading also to a situation that  the second party does not get the input credit. 

“If we accidentally missed filing of returns on the particular date, say October 10, we have no option but to pay a penalty of virtually Rs 200 per day as we cannot file our return and the GSTN system will not allow us till the first date of next month. So, one day lapse can lead to a minimum penalty of around Rs 2100 for the month. Why should I have to pay for a system’s incompetence?  As it is in Income Tax, we can file a revised return and we get our chances to file on other dates, we do not have such facility in GST. The trader community is very unhappy about this stringent law. If I have missed my date on October 10, why should I be forced to file my returns only in windows and why can’t I file it on October 11 with penalty?” asks a trader on condition of anonymity.

The second issue is that assigning of Homogenised System Nomenclature (HSN) code. All across the world the commodities are divided into coding system. Similarly services too have been assigned codes. Up to a turnover of less than Rs 1.5 crore, one need not give any HSN code but from Rs 1.5 to five crore one has to give a two digit code and above Rs five crore, one has to give a four digit code. 

Earlier, a CA used to give a single code for a consolidated service. But now the code has been broken into much smaller segments. Similarly, goods can now be classified into different HSN as there are different rates of taxation. Hence, HSN code is becoming a bit of a concern and clarification is required in this. Also, the reverse service charge mechanism is another issue where people are now supposed to give HSN codes for that too. 

“This means that I should not only know the code of each component, which I am selling but I should also know codes of the services, which is a tedious and problematic exercise. However with the time gap given to the assesses, the compliance looks much better but the issue of allowing people to file their returns must be taken up seriously by competent authorities” said chartered accountant, Sandip Bhandare.

Sources from the Central government working on GST on condition of anonymity informed Herald that the refunds on GST have started and the exporters are feeling a bit relieved. “We also need to go in detail on several notifications which almost come on a daily basis. Also, digital signatures cannot be uploaded in the system and general people are finding it difficult,” added the source.