April 11, 2018
A technical glitch in the Composition Scheme of Goods and Services Tax (GST) is increasing the tax liability of the businessmen, complained tax practitioners.
They have demanded that unless the glitch is not resolved, businessmen will have to unnecessarily shell out more money creating a shortage of liquidity.
Sources told DNA that the government had made some changes late in the night after the glitches were brought to its notice.
There is also a confusion regarding the threshold for inclusion of businessmen under thee Composition Sc-heme. The scheme provides for the payment of lumpsum tax to the businessmen.
“As per Rule Table 4A should contain list of (Normal or Regular) Inward Supplies and Table 4B should contain Inward Supplies liable for Reverse Charge Mechanism (RCM). However, because of some mistake, Table 4A is calculating tax and increasing liability of individual tax payer,” said Axat Vyas, a tax practitioner. The glitch has been encountered at a time when traders are approaching due date and error-free utility is not available hence taxpayers who have opted for Composition Scheme are forced to file wrong details in their returns, he said.
Another major issue being encountered is that initially the exemption limit for turnover under the scheme was kept at Rs one crore. Later on, in the run-up to the elections in Gujarat, finance minister Arun Jaitley had said the limit will be raised to Rs1.5 crore, for which a law will be amended at a later stage.
[Daily News and Analysis]