Thread by @RURALINDIA

#HappyDiwali to all of you who are registered under #GST !

Cause, post Diwali u wouldn't be happy!

I visited my CA friend in the morning. He flagged off the massive inconvenience that may be caused to businesses & MSMEs cause of Notification No.49/2019 dated 9th October 2019.

Let me explain :

1. Returns determining tax liability are mandatorily required to be filed before 20th of November. Known as 3 B

2. Details of sales / purchase (R1) is to be filed by 10th November.

3. The new rule provides that you can take credit in 3B only to the extent of that which shows in 2 A ( which is nothing but a compilation of R1 of your suppliers) + 20%.

4. Did you understand anything ?

No ?

Now, listen carefully -

5. If your supplier delays uploading his R1, you will get only 20% of the credit and will have to pay the remaining amount of #GST

6. So your working capital will be stuck with the government for a delay on part of your supplier.

7. The fun part is - though the date for filing R 1 is 10 days before 3 B, there is no penalty on delayed R1 but there is penalty on delayed 3 B.

8. The absurd part is - If your supplier has a turnover below 1.5 Crores - he can file R1 quarterly. So he isn't even making a delay

9. Then - the technical glitches that prevent people from filing / uploading returns on the GSTN network are legendary.

10. Hence, when the businesses were seeking simplification - the govt has made it more complicated & coercive.

11. Conclusion : the new changes in #GST will further take away liquidity of businesses. You will be monetarily punished for someone else's fault / delay (Mind u - not fraud)

Meanwhile : let's eat that #EaseOfDoingBusiness ranking for dinner tonight.

#GabbarSinghTax ??