Post GST rollout: Hasmukh Adhia offers clarifications amid confusion among businesses

The clarifications by government follow after reports of traders expressing concerns about enrolment with a provisional ID number and their wait for a final GSTIN number.

By: ENS Economic Bureau | New Delhi | Updated: July 3, 2017 2:20 am
gst, hasmukh adhia, adhia, adhia gst, Revenue secretary, Revenue secretary Hasmukh Adhia, Hasmukh Adhia GST, business news, india news “It (GST) appears higher because excise duty and other taxes which were invisible earlier are now subsumed in GST
and so visible now” Hasmukh Adhia said.

Two days into the goods and services tax (GST) regime, revenue secretary Hasmukh Adhia on Sunday took to Twitter to clarify myths doing the rounds about the new indirect tax regime. Adhia said that businesses can continue under GST with provisional ID number and they need not wait for the Goods and Services Taxpayer Identification Number (GSTIN).

“Provisional ID will be your final GSTIN number. Start business,” Adhia said. Adhia also clarified that businesses need not generate all invoices on computer/internet only. “Invoices can be generated manually also,” he said. Saying that it’s a myth that GST rates are higher than value-added tax (VAT), Adhia stated: “It appears higher because excise duty and other taxes which were invisible earlier are now subsumed in GST and so visible now.”

He said it’s a myth that businesses which were earlier exempt will immediately need new registration before starting business now. “You can continue doing business and get registered within 30 days,” he assured taxpayers. He also said that small retailers need not file invoice-wise details in their return forms and retailers will have to just file one return form as the two other forms will be auto-populated by the computer. “There is only one return with three parts, out of which first part filed by dealer and two other parts auto populated by computer,” he said.

Adhia said it’s a myth that internet is needed all the time to do business under GST. He said the reality is internet would be needed only while filing monthly return of GST. Reacting to doubts about the new indirect tax regime circulating on social media, the revenue secretary also denied that if a person makes payment of utility bills by credit cards, the he/she will be paying GST twice. “This is completely untrue. Please do not re-circulate such message without checking it with authority,” Adhia said.

The clarifications by government follow after reports of traders expressing concerns about enrolment with a provisional ID number and their wait for a final GSTIN number. A number of shops in major markets had remained shut, or didn’t carry on any business on the first day due to confusion about taxes. Also, since the roll-out of GST from July 1, many consumers had posted pictures of receipts issued in grocery stores or eateries showing tax deductions as GST, instead of VAT/Service tax earlier, indicating a higher tax incidence for some goods.

The finance ministry in a statement said that day two of GST passed without major problems being reported. “The state and central government officers are providing the required information to the trade and industry. We have got encouraging reports from roadside dhabas and big restaurants as well as from kirana shops to departmental stores that have started getting acclimatised to the new tax system,” it said.

Adhia also appealed to people not to circulate any unverified messages through social media. The government ushered in GST from midnight of July 1. The indirect tax regime, seen as the biggest since Independence, has a multi-tier tax rate structure — five, 12, 18 and 28 per cent — along with a zero rate for essential items such as salt, unpacked foodgrains, healthcare services, and cess for luxury goods.

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  1. A
    Ajeet Singh
    Jul 19, 2017 at 4:20 pm
    Respected Sir, I am an medium exporter having turnover of less than a Crore. I went to the Central GST commissioner to get LUT "Letter of undertaking for exports without payment of Integrated Tax" but they refused to issue as they need a bank guarantee of 15 of my last years turn over means approx 15 Lakh. Sir being a medium exporter how can I arrange a bank guarantee of Rs. 15 Lakh so it is very difficult for us kind of peoples to survive and continue our business. since I am exporting since 2002 and my track record is A class . Hence you are kindly requested to pl. allow us to get LUT without bank guarantee as giving to the big exporter. As it is very very difficult for us kind of exporter to arrange the bank Guarantee as bank is asking to put equal amount of FDR to issue the bank Guarantee as security. Kindly help us sir the problem is big for us. Thanks. Regards, Ajeet Singh Prop. The Interiors Rug, Jaipur-INDIA.
    1. K
      Krishna Kumar
      Jul 4, 2017 at 7:28 pm
      Small time caterers serving low cost meals to corporates, with turnover less than 75 lakhs per anum, can they be covered under 5 composite scheme
      1. C
        Jul 4, 2017 at 11:10 am
        kindly confirm whether Notification No. 25/2012-Service Tax, does exemptions under the said notification continue in GST REGIME.
        1. P
          P Banerjee
          Jul 3, 2017 at 1:18 pm
          The administrative problems will probably be solved in 2/3 months. But the attempt of State Government like Tamilnadu imposing 30 tax on cinema to circumvent the GST are bad and if not put down will make GST just an additional tax. GOI should ensure that such circumvention taxes are not imposed by an State Governments.
          1. G
            Gangu Radhakishan
            Jul 3, 2017 at 7:56 am
            Some retailers are not issuing bills to their customers. Old practice is continuing. How central and state governments will handle this issue? Everyone should try to make India shine and reach new heights in development on sacred ethical foundation. Hence instructions should be issued to all businesses across India to issue receipts and be transparent in tax matters.
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