The hit and trial approach of the government towards implementation of the goods and services tax (GST) is taking its toll. Whether it is GST collections, compliance or systems, there is uncertainty over everything.
The date for filing annual returns and GST audit for 2017/18 has again been extended - this time from 31 August to 30 November - due to 'technical' glitches. This exposes the inability of the GST Network to cope with the ever-fluid indirect tax regime.
While the government would like us to believe that technical glitches are one of the main reasons for extension of the deadlines, the bigger issue, it seems is, taxpayers finding it difficult to reconcile returns with financial statements. As part of GST annual return and GST audit, taxpayers have to reconcile those returns with financial statements. But reconciliation is taking a lot of times as taxpayers fear questions from the tax department if they report differences. And while dates for filing annual GST returns are extended again, other major compliance deadlines are also around the corner. Going by the trend, more extensions and delays look imminent.