Teething troubles: Confusion, fear among traders as they face problems in migrating to GST
The prevailing view is that the GST rollout has been more or less smooth so far. But a close interaction with users and intermediaries involved in the implementation reveals that this is not completely true.
![[Photo: Raj Verma]](https://akm-img-a-in.tosshub.com/businesstoday/images/story/201707/gst660_072417124811.jpg?size=1200:675 "[Photo: Raj Verma]")
- Jul 28, 2017,
- Updated Jul 28, 2017 4:45 PM IST
The Goods and Services Tax Network (GSTN), the IT infrastructure provider for GST, was supposed to take invoice uploading services live from July 16. It has deferred the plan to July 24. GSTN Chairman Navin Kumar says they were not very confident about the preparedness of GST Suvidha Providers, or GSPs, facilitators for uploading invoices/returns on the GSTN website.
GSPs, however, say that GSTN has neither provided them updated APIs (Application Programme Interfaces) nor MPLS (Multiprotocol Label Switching), a technique to carry data from one network to another. While they admit that initial hiccups were expected due to the complexity and enormity of the job, they also say that GSTN does not have sufficient staff for such a big task. An executive of a GSP said on condition of anonymity - he even says that GSPs have been asked to not talk about their problems - that GSTN is not only short-staffed, it also lacks quality personnel. He says the GSTN leadership has been unable to get bureaucracy to do things. The managing director of another GSP also said, requesting anonymity, that they have not been provided the latest APIs.
The prevailing view is that the GST rollout has been more or less smooth so far. But a close interaction with users and intermediaries involved in the implementation reveals that this is not completely true. Even as the new system is about to complete one month, the problems, say users, have just started pouring in - be it technical glitches, understanding of the new laws/procedures, or taxpayers' reluctance/apprehension. And all this when some of the biggest milestones for shifting to the new system - start of invoice/return uploading, tax payments, refunds, etc - are yet to come.
Some initial hiccups were always expected during such a huge changeover. The government, on its part, has been proactive in ensuring that the rollout of GST is smooth and does not lead to speculation, panic or profiteering. It has put all its energy and might in checking rumour mongering, clarifying ambiguities/confusions, and resolving taxpayers' issues. It has set up facilitation centres in all sales tax and excise offices, organised interactive sessions with industry and traders and come out with timely FAQs to clear confusion.
"We have undertaken a large number of awareness campaigns which have been widely attended and well received by taxpayers. The CBEC has issued FAQs and formed sector groups, some of whom have come out with their reports. We expect our officers to be not only well conversant in GST law and rules but also be ready to handhold industry in registration and filing procedures," Vanaja N. Sarna, Chairperson, Central Board of Excise & Customs, said at a recent GST session organised by the CII.
All state sales tax departments have conducted training and outreach programmes, sometimes on their own and sometimes with the CBEC. Akhade says they have conducted 500 training sessions for trade associations in Maharashtra. "We have set up facilitation centres and helpdesks. We are receiving calls from across the state. We have developed a mail on Google Drive where stakeholders can put questions. We have formed eight committees that pick up their subject and respond accordingly," he says.
The Delhi VAT Commissioner says they get 40-50 people in the facilitation centre every day. He says he himself attends two-three events/meetings daily in his office and outside to keep abreast of taxpayers' issues. He says the sales tax department has conducted more than 50 outreach programme with traders' associations.
However, these efforts are running into unexpected challenges. After reports of unscrupulous elements trying to fleece shopkeepers and customers, the finance ministry has barred tax officials from paying unauthorised visit to any business premises. Yadav of CBEC says they do not want such issues and, therefore, don't want officials to visit traders or businesses even to help. "So, we conduct these events with traders bodies," he says.
Let's hope all these niggling problems are sorted out soon so that the country can celebrate the success of the GST rollout.
@dipak_journo
The Goods and Services Tax Network (GSTN), the IT infrastructure provider for GST, was supposed to take invoice uploading services live from July 16. It has deferred the plan to July 24. GSTN Chairman Navin Kumar says they were not very confident about the preparedness of GST Suvidha Providers, or GSPs, facilitators for uploading invoices/returns on the GSTN website.
GSPs, however, say that GSTN has neither provided them updated APIs (Application Programme Interfaces) nor MPLS (Multiprotocol Label Switching), a technique to carry data from one network to another. While they admit that initial hiccups were expected due to the complexity and enormity of the job, they also say that GSTN does not have sufficient staff for such a big task. An executive of a GSP said on condition of anonymity - he even says that GSPs have been asked to not talk about their problems - that GSTN is not only short-staffed, it also lacks quality personnel. He says the GSTN leadership has been unable to get bureaucracy to do things. The managing director of another GSP also said, requesting anonymity, that they have not been provided the latest APIs.
The prevailing view is that the GST rollout has been more or less smooth so far. But a close interaction with users and intermediaries involved in the implementation reveals that this is not completely true. Even as the new system is about to complete one month, the problems, say users, have just started pouring in - be it technical glitches, understanding of the new laws/procedures, or taxpayers' reluctance/apprehension. And all this when some of the biggest milestones for shifting to the new system - start of invoice/return uploading, tax payments, refunds, etc - are yet to come.
Some initial hiccups were always expected during such a huge changeover. The government, on its part, has been proactive in ensuring that the rollout of GST is smooth and does not lead to speculation, panic or profiteering. It has put all its energy and might in checking rumour mongering, clarifying ambiguities/confusions, and resolving taxpayers' issues. It has set up facilitation centres in all sales tax and excise offices, organised interactive sessions with industry and traders and come out with timely FAQs to clear confusion.
"We have undertaken a large number of awareness campaigns which have been widely attended and well received by taxpayers. The CBEC has issued FAQs and formed sector groups, some of whom have come out with their reports. We expect our officers to be not only well conversant in GST law and rules but also be ready to handhold industry in registration and filing procedures," Vanaja N. Sarna, Chairperson, Central Board of Excise & Customs, said at a recent GST session organised by the CII.
All state sales tax departments have conducted training and outreach programmes, sometimes on their own and sometimes with the CBEC. Akhade says they have conducted 500 training sessions for trade associations in Maharashtra. "We have set up facilitation centres and helpdesks. We are receiving calls from across the state. We have developed a mail on Google Drive where stakeholders can put questions. We have formed eight committees that pick up their subject and respond accordingly," he says.
The Delhi VAT Commissioner says they get 40-50 people in the facilitation centre every day. He says he himself attends two-three events/meetings daily in his office and outside to keep abreast of taxpayers' issues. He says the sales tax department has conducted more than 50 outreach programme with traders' associations.
However, these efforts are running into unexpected challenges. After reports of unscrupulous elements trying to fleece shopkeepers and customers, the finance ministry has barred tax officials from paying unauthorised visit to any business premises. Yadav of CBEC says they do not want such issues and, therefore, don't want officials to visit traders or businesses even to help. "So, we conduct these events with traders bodies," he says.
Let's hope all these niggling problems are sorted out soon so that the country can celebrate the success of the GST rollout.
@dipak_journo