Its around 4 months have passed, we have entered in the GST regime. Like any other major change, GST is also facing teething problems, which are expected to be sorted out in coming few months.
This blog will try to comment on performance of GST in first 120 days.
Biggest achievement of GST is quantum of the tax collection. GST collected so far is in line with the estimates provided by the govt at the time of rollout. As per latest data released by finance ministry, GST collection was above Rs. 95,000/- Crores in July 17 and was above Rs. 91,000/- Crore in August 17. Collection in September 17 was at Rs. 92,150/- Crores. Figures of October are awaited. However, point to be noted is this is only the collection of GST. This is not the actual revenue for govt. Because, from this collection, govt has yet to pay the refunds to eligible assessees. Collection net of GST can be termed as actual revenue for the govt. Nevertheless, gross collection as well is impressing.
Some financial experts and socialists were arguing that there will be huge protest from small businessmen against GST. Fortunately, it is not so. GST is well accepted by entire strata of society and people are adapting to it.
However, there is major cause of concern as well. Thing to worry about is the fact that even July months GST returns are not yet filed completely. (People have collected GST and paid it to govt, but return filing process is pending). Due date for filing GST Returns for July 17 have been extended again and again and as of date, it is 30/11/2017. Govt. has claimed that it has established fully automated system with almost nil human intervention which will ensure transperancy and accuracy. However, even after 120 days post implementation, no one knows how that system works exactly. Reason being, not even the first months returns have been filed yet! Govt and tax payers are blaiming this on each other. As per govt, people are not yet used to it, and as per tax payers, system is too complicated to get accustomed with it.
For certain sectors, GST rates are too high, and govt. has revised it last couple of months. Though govt is paying attention to the troubles of various industries, it wont be possible for the govt. to satisfy all of them! Thus, some sort of resistence will always remain.
Lets see, what happens next!
Till then, stay tuned and keep reading!!
CA Ashish Blog 