Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Monday 19 June 2017

BHIM : Can You tango with GST ?



In another ten days , GST will roll out across India on July 01



Businesses / Industries / Experts / Tax Consultants / Politicians and even 80+ lakh tax assesses are worried to death about possible disruption to businesses



Government officers do not deny that there might be a chaos , considering that nothing like this reform has ever been attempted in any other country, on this scale



ASSOCHAM and others , have requested postponement of the roll out date



As per news reports , some 67 lakh business tax payers have already “ Registered “ on GSTN portal



Big companies , buying goods / services from small companies, are bringing pressure on these suppliers to get registered or else the buying companies will stop buying and cancel pending orders



This is because , the big buying companies will have to fork out 28 % GST , without getting any “ Input Credit “ if their small suppliers are not registered !



This is a good pressure tactic for obtaining quick compliance !



Hopefully, most problems will get sorted out in 6 months , with the Government officers and the GST Council responding to each problem , as it surfaces



One major issue is the number of :


·         Daily invoices to be uploaded ( could be 500 for a hotel ? )

·          
·         GSTR 1-2-3B, Monthly returns to be filed ( could be hundreds ? )

·          
Whereas this exercise cannot be avoided for ALL types of assesses , I think it could be avoided for “ Payment Transactions “ which get made using Mobile Wallet App – BHIM V 4.0 ( Voice Activated payments )



In BHIM 4.0 , I have suggested incorporating a feature for deduction and deposition of applicable GST , into concerned account automatically !



And if BHIM V 4.0 , can deduct / deposit GST automatically / instantaneously, there is no ( technical ) reason why it cannot , also upload the relevant INVOICE pertaining to each payment and also upload those RETURNS as per schedule, on GSTN portal  !



This is possible since Aadhar Number ( ID ) is now linked to almost all of the following databases , currently being maintained by different government agencies / private concerns :



·         Bank Accounts ( from Dec 2017 ) / Jan Dhan Accounts


·         PAN ( Corporate and Individual Tax Payers )


·         Registrar of Companies / MSME Ministry


·         RTO of different States ( For Road Tax / Vehicle Tax )


·         Municipalities ( for Property Tax )


·         GSTN Portal


·         IT department / Sales Tax Department


·         Mobile Wallet Companies / Credit – Debit card Issuers


·         Excise Department / Customs Department


·         Police Department / Labour Department


·         NSSO / Election Commission ( Voter Identification )


·         A whole host of agencies



It is only a matter of time before these agencies / departments :


·         Enable Aadhar linkedData Exchange “ between these agencies


·         Enable total “ Synchronization “ of their departmental data bases


·         Agree to dump all data collected by them into a CENTRAL DATA BASE



BENEFITS :


·         Enormous saving of time / effort on part of small establishments ( retailers / self employed ) who accept payment using BHIM V 4.0



IMPLICATION FOR BHIM V 4.0 :


·         If BHIM 4.0 can save them the hassle of daily uploading of invoices , millions of small retailers / self-employed would use ONLY BHIM V 4.0 – and no other mobile wallets !



IS  THIS  POSSIBLE  ?


·         Correct question should be : “ When can BHIM V 4.0 , with feature to automatically upload invoices / GST returns , be launched ? “



HINT :


Could following help to implement my suggestion ?




·         https://www.digio.in/


·         www.GupShup.com





I SEE NO REASON WHY BHIM CANNOT TANGO WITH GST  !




20  June  2017








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