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GST - 2 Major unbridgeable gaps.

1. All traders in india should be educated and understand tax laws and numerous GST slabs. They should have access to IT systems and be able to file the returns every week and as many as necessary leading to 100s of returns. In a country where most traders are uneducated and don't know to read or write English nor Hindi nor local language, how can they understand tax laws and GST slabs by categories of products? And they cannot afford to hire tax accountants.

2. Refund business - lets say I am a manufacturer. I buy products from vendor A at GST 18% tax for input raw materials. Post manufacturing I charge output at say GST 5%. Now the policy does not allow me to net off the output tax with input tax. I have to pay the 5% and then apply for refund for the 18% for input tax paid already. Remember I have already paid for the 18% tax for input raw materials. Vendor has paid the govt.

Here I charge the customer less by removing the 18% input tax as I will get the refund. I cannot charge customers 18% input raw material tax and also 5% output GST tax.

Refunds took forever as the system could not match my uploaded manufacturer GST invoice with the vendor A input GST invoice. Over 100 crore invoices got stuck for nearly a year chocking all businesses.

And you can see how messy this is. Every business has to match incoming invoices with outgoing invoices as the govt GST system is unable to match online. Leading to massive redtape

<blockquote data-quote="Jaykay767" data-source="post: 417478" data-attributes="member: 26832">GST - 2 Major unbridgeable gaps.1. All traders in india should be educated and understand tax laws and numerous GST slabs. They should have access to IT systems and be able to file the returns every week and as many as necessary leading to 100s of returns. In a country where most traders are uneducated and don&#039;t know to read or write English nor Hindi nor local language, how can they understand tax laws and GST slabs by categories of products? And they cannot afford to hire tax accountants. 2. Refund business - lets say I am a manufacturer.&nbsp; I buy products from vendor A at GST 18% tax for input raw materials. Post manufacturing I charge output at say GST&nbsp; 5%. Now the policy does not allow me to net off the output tax with input tax. I have to pay the 5% and then apply for refund for the 18% for input tax paid already. Remember I have already paid for the 18% tax for input raw materials. Vendor has paid the govt.Here I charge the customer less by removing the 18% input tax as I will get the refund. I cannot charge customers 18% input raw material tax and also 5% output GST tax. Refunds took forever as the system could not match my uploaded manufacturer GST invoice with the vendor A input GST invoice. Over 100 crore invoices got stuck for nearly a year chocking all businesses. And you can see how messy this is. Every business has to match incoming invoices with outgoing invoices as the govt GST system is unable to match online. Leading to massive&nbsp; redtape</blockquote>

[QUOTE="Jaykay767, post: 417478, member: 26832"] GST - 2 Major unbridgeable gaps. 1. All traders in india should be educated and understand tax laws and numerous GST slabs. They should have access to IT systems and be able to file the returns every week and as many as necessary leading to 100s of returns. In a country where most traders are uneducated and don't know to read or write English nor Hindi nor local language, how can they understand tax laws and GST slabs by categories of products? And they cannot afford to hire tax accountants. 2. Refund business - lets say I am a manufacturer. I buy products from vendor A at GST 18% tax for input raw materials. Post manufacturing I charge output at say GST 5%. Now the policy does not allow me to net off the output tax with input tax. I have to pay the 5% and then apply for refund for the 18% for input tax paid already. Remember I have already paid for the 18% tax for input raw materials. Vendor has paid the govt. Here I charge the customer less by removing the 18% input tax as I will get the refund. I cannot charge customers 18% input raw material tax and also 5% output GST tax. Refunds took forever as the system could not match my uploaded manufacturer GST invoice with the vendor A input GST invoice. Over 100 crore invoices got stuck for nearly a year chocking all businesses. And you can see how messy this is. Every business has to match incoming invoices with outgoing invoices as the govt GST system is unable to match online. Leading to massive redtape [/QUOTE]

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