New return of GST:
A lot of litigation on GSTR 3b already is there. The late fees and penalty on 3b are questioned by the court. New return of GST is introduced. This is even harder version. The most important issue is still matching. The task of matching will take place. What is matching is not done due to the default of the portal. We have seen in the past that the implementation of returns on the portal was very slow and misleading.
Issues in new GST return:
The biggest issue in new return is control on ITC. Matching is mandatory. Non-matching of data result in denial of ITC. Not only this, you need to pay it back with interest to govt. In this backdrop, the role of portal is very important. Like in the past, if the portal is recording the provisions incorrectly. What is the way out for the taxpayer? Again the saga of wasting time on the portal is going to start? The only demand for the taxpayer was to let them correct their mistakes. Instead of focusing on that the regulators are consistently doing new mistakes and adding into trouble of taxpayers.
Red signal for defaulters:
What matching mechanism is going to do? It will make it sure that the ITC to the recipient will be linked to the tax paid by the supplier. Is it that easy? Also why the recipient shall suffer for the mistakes of a supplier? It is a big question but yes till now the developments indicates that. Thus you need to be careful.
