GST intelligence in 2018 – IDT, Finance, Management
GST intelligence in 2018 - IDT, Finance, Management
I must share certain pathetic situations of corporates which i came across while rendering ex- parte counsel opinions in last 5-6 months on certain already implemented process of GST in different organisations including anti - profiteering on regular basis.
Peculiar Transition- I found experiments and typical thought process have led miserable situations for many companies even in TRAN 1 and ITC.
The inputs as such cleared on reversal of CENVAT credit and also goods sent on job work were treated in a devastating manner.
The transition will be most prone to litigation as it has already been reflected by the officials that more than Rs 1 Crore of ITC is under audit card.
Costing & Anti-profiteering-The costing which one could have kept at ease and with authority of law were not adopted either due to lack of clarity or due to instructions from too many cooks.
The reduction of taxes and availment of ITC were identified but still not taken in justifying manner. In most of the companies, I found that it was more or less confined to board room dictum.
Inter Border Transaction - The IGST transactions were carried out in such a manner as if they wanted to have litigation as early as possible.Consolidations were done in panic.
Realistic Impact Study - The impact study was obsessed with artificial aspects and reality was neither factored nor understood in totality.
Clarity on Basics - I wish that they should have focussed more on clearing their basics rather than craving for superficial advice.
The issues of GST were mixed with concepts of excise & service tax and this resulted more confusion amongst new and seasoned IDT persons. This led them to land on various isolated land which has nothing to do with the concept of GST in an accurate manner.
Contracts - Contracts were changed to effect GST provisions as a formality rather than adding atleast 2 pages since GST has various impacting clauses.
The contract which is the heart and soul of a business was left with loopholes. Most of them ignored ITC, ITC matching, anti-profiteering, credit/debit notes, debts due to GST & IBC, return, accountability, etc.
There is a history of disputes mainly due to badly worded contracts even in countries which have had GST regime.
It should be a matter of grave concern for entire industry to opt for due diligence in time.