Impact of digitalization in GST
There will be very little interface between the tax payer and tax authorities under GST. Certain important provisions in this regard are as follows:
- The registration will be granted on-line and shall be considered to be granted if no deficiency is communicated to the applicant within 3 common working days.
- The taxable person shall assess the taxes payable by himself (self-assessment) and credit it to the account of the Government.
- The tax payment shall be made electronically through internet banking. Smaller taxpayers shall be allowed to use the systems generated challan and pay tax at the bank counter.
- The taxpayer shall furnish the details of sales and purchase electronically without any physical interface with the tax authorities.
- The Tax payers shall file monthly returns of the sales and purchases, ITC availed, tax payable, tax paid and other prescribed particulars, through electronic means. Composition tax payers shall also file quarterly returns electronically. Omissions/incorrect particulars can be self-rectified before the filing of annual return.
- The input tax credit shall be matched, reversed and reclaimed electronically at the web portal of GSTN without any tax payer contact. [This would prevent , among other things the input tax credit being taken on the basis of fake invoices or twice on the same invoice]
- Tax payers shall be allowed to keep and maintain accounts and other records in electronic form.