India to provide Common Accounting Software to Small Traders
The Goods and Services Tax Network (GSTN) is working on developing a Common Accounting Software to make the process of filing GST returns easier for small traders. The software will be given free-of-cost to the small tax payers. GSTN has also directed its software vendor Infosys to design new forms for filing returns.
“Eighteen companies have been identified by the GSTN to develop the software which will be given to small tax payers,” said Group of Ministers Chairman Sushil Kumar Modi. “The new form is expected to come in four to six months. The software will be developed based on this new form,” he added.
Infosys has also developed a mobile application that will be used by tax officers for field work. The app will enable them to take a picture, capture location data and file a report on the spot. This is expected to launched in 15–20 days.
He said that the data and business intelligence by the network was helping the Council to track tax evasions and warn dealers filing fake invoices. He said that this work is now being done by the states. Bogus invoices could be spotted by using business intelligence and data intelligence (Eg: Those who have not filed returns but generated e-way bills). He said that the states have now stared using MIS (management information system) and BI (business intelligence).
States now have a detailed view of the consumer items entering and leaving the state and how they enter and leave it. More than 99 per cent of the goods are transported by road and only 0.5 per cent by rail. Out of 23.61 crore e-way bills generated 11.38 crores (48 per cent) constitute inter-state movement while 12 crore (51.78 per cent) constitutes movement within the state.
Approximately 92 percent of the tax payers file returns below the five crore mark while 20 percent record nil returns.
Claiming that GST revenue was improving after the procedures and rules were reformed, Modi said revenue deficit of states had declined to 13 per cent from 17 per cent earlier. “Himachal Pradesh, Jammu & Kashmir and Uttarakhand being special category states, are exempted from excise duty,” he said. The shortfall in Bihar alone has declined from 42 per cent to 20 per cent. The central government compensates state’s revenue shortfall for five years.
He said that the Finance Secretary, Hasmukh Adhia was in Bihar yesterday to get details on the revenue shortfall. Modi said that the services sector was not getting reflected properly and that the DG-Audit would have to audit banks, airlines etc for places of supply rules.
“We are hoping the combined revenue will soon touch Rs 1.3 lakh crore per month with greater compliance by all the stakeholders,” reiterated Modi.
The Council had earlier deferred implementing the TDS and TCS after e-commerce players like Amazon, Flipkart and Myntra expressed concerns about the compliance burden.
As decided by the GST Council, e-commerce firms will pay Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) with effect from October 1.
The Union government on September 13 notified October 1 for implementing the TDS and TCS provisions under section 52 of the Central GST (CGST) Act.
The e-commerce companies have to deduct TDS up to 1 per cent state GST and 1 per cent central GST on intra-state supplies of over Rs 2.5 lakh.
In the case of inter-state supplies of over Rs 2.5 lakh, the TDS will be 2 per cent of the integrated (state and central) GST.
On changing the structure of the GSTN, Ajay Bhushan Pandey, Chairman GSTN said that the existing shareholders in the GSTN would have to surrender their shares and this would have to be bought by the states. “We are trying to do it as early as possible,” he said.
