Glitches in GSTN remain cause of concern

A recent survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) on the implementation of the Goods and Services Tax (GST) noted that the technical glitches on the GST Network (GSTN) remain a cause of concern.

The survey, which was conducted between November 2017 and January 2018 showed that although the GST had a positive impact on the businesses' logistics, glitches in the GST portal, cumbersome procedures of tax filing, documentation and cost of compliance remain major areas of concern.

All respondents of the survey pointed out issues with the robustness and volume handling capacity of the GST Portal. Problems like delayed reflection of updated data as well as payments, delays in process of input credit set offs, inability to upload heavy files of certain formats and lack of provision to modify or revise errors posed major challenges to businesses. Respondents suggested that a major revamp of the portal was necessary to make it more efficient. There should be provisions for auto set off of the liability against available credit.

Monthly filing of GST return was cited as a cumbersome procedure. Around 78 percent of the respondents suggested that the periodicity of return filings for those taxpayers having aggregate turnover above Rs. 1.5 crore should be changed from monthly to quarterly. For services providers, multiplicity of registrations was a concern as a separate registration is now required with every state where service is being provided. Respondents to the survey emphasised that filing of returns be made simpler, and a centralised registration for inter-state services be implemented.

The respondents found the current limit of 10 kms for the purpose of updating details of goods on the portal to be inadequate. Respondents, especially small businesses, felt that e-way bill need not be introduced as it was only an additional compliance requirement as all details of sale and purchase were readily available on the portal. It was suggested that the minimum limit for requirement be increased to 50 kms and there be no requirement of e-way bill for movement of goods within the city limits.

Businesses, especially exporters faced difficulty to claim refunds. The mismatch between shipping bill date and tax invoice date does not allow initiating refund of IGST paid on exports. They have suggested that this condition of matching shipping bill date and tax invoice should be waived off. Firms which supply raw materials to its SEZs locations located in other states is liable to GST as such a transfer is considered sales and is not getting a zero-rating benefit. Such transfers for captive consumptions should not be charged under GST.

Most respondents also stated that there is a need for greater clarification from the government on the anti-profiteering provisions to ensure that they do not lead to undue harassment.