Pre-Budget Quote on GST Laws, E-Invoicing, IMS by Himanshu Sinha, Partner and Head of Tax Practice, Trilegal
Below the Pre-Budget Quote on GST Laws, E-Invoicing, IMS by Himanshu Sinha, Partner and Head of Tax Practice, Trilegal
* “IMS, more compliances and less simplification: Introduction of IMS has added a compliance burden for taxpayers. The system requires recipient taxpayers to accept or reject invoices. The GST Council has recommended linking GSTR 2B with IMS, meaning that failure to act on invoices may prevent taxpayers from claiming ITC. This increases the compliance cost for taxpayers. Hence, IMS should be made optional and not mandatory.
* Present e-invoicing guidelines are too onerous: E-invoicing rules are too strict for small taxpayers, as invoices cannot be cancelled after 24 hours of generation. This can be challenging if mistakes are made, requiring taxpayers to create a credit note and wait for approval on the IMS. Hence, e-invoicing guidelines should be relaxed for small taxpayers.
* Recent changes in GST laws are forcing small taxpayers to spend more time on compliance: GST was introduced with an aim to streamline erstwhile indirect tax laws. Such an aim can still be realised by making only annual returns mandatory for small taxpayers with a turnover under 2 Crores and by establishing a nodal authority to assist such taxpayers in filing of returns and addressing other GST related concerns.”
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