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India’s Goods and Services Tax (GST) was touted as a revolutionary reform that would simplify the tax system and transform the economy. However, over five years since its implementation, GST still poses major challenges for businesses across the country.
Despite the government’s efforts, tax evasion and fraud remain rampant. Honest taxpayers struggle with complex compliance requirements, mismatched input tax credits, refund delays, and frequent changes in rules and interpretations.
The issues are so pervasive that India is losing billions of rupees in revenue each year to GST evasion. Solving these problems is crucial, not just for businesses’ bottom lines, but for the nation’s fiscal health.
Fortunately, there is a solution – working with a professional GST consultancy like Filingwala.com. By partnering with experienced experts, you can navigate the GST minefield, rectify past issues, and future-proof your compliance. Not only will this give you peace of mind, but it will also help stem the tide of tax evasion and strengthen India’s economy.
The Staggering Cost of GST Evasion in India
The numbers are shocking. According to government estimates, India lost a staggering ₹70,000 crores ($9.1 billion) in potential GST revenue in the 2020-21 fiscal year alone due to tax evasion. That’s almost 10% of the total GST collection!
Tax evasion comes in many forms – under-reporting of sales, issuance of fake invoices, wrongful ITC claims, non-payment of taxes collected, and more. While a small percentage of willful fraud accounts for the biggest losses, a much larger number of businesses make mistakes due to ignorance, lack of resources, or overly complex compliance requirements.
This rampant evasion has hit government revenues hard. Several states face soaring deficits, largely due to shortfalls in GST collections versus targets. At the national level, the tax gap is becoming an impediment to funding critical priorities like infrastructure, healthcare, and education.
There are also broader economic costs. Honest businesses that dutifully comply with GST face higher costs, reduced competitiveness, and cash flow crunches. This hampers growth and investment. Tax evasion creates an uneven playing field and rewards unscrupulous practices. If left unchecked, it can taint India’s reputation as an attractive investment destination.
The government is well aware of the problem and has taken steps to tighten enforcement, upgrade IT systems, and simplify GST. But clearly, more needs to be done. Bridging the massive tax gap requires a multi-pronged approach – smarter policies, better technology, stricter action against fraud, and crucially, handholding of businesses to improve voluntary compliance.
Common GST Issues Faced by Businesses
To solve the GST evasion crisis, it’s important to understand its root causes. Here are some of the biggest pain points that businesses of all sizes grapple with:
Reconciliation Errors & ITC Mismatches
Under GST, businesses can claim input tax credit (ITC) for taxes paid on purchases to offset against their output GST liabilities. However, claiming the correct ITC requires reconciliation of purchase invoices with suppliers’ sales figures in GST returns.
This can be an accounting nightmare due to factors like delayed filing of returns by suppliers, cancelation or revision of invoices, mismatch in HSN/SAC codes, different GSTIN branches, and more. Even a small mistake can lead to huge demand notices and interest liabilities from tax authorities.
E-Invoicing and Compliance Burdens
With a bewildering array of returns (GSTR-1, GSTR-3B, GSTR-9, GSTR-9C, etc.), e-way bills, e-invoicing, and frequent requirement changes, GST compliance has become a hugely time-consuming and expensive exercise. For smaller businesses, arranging the necessary infrastructure, software, and skilled manpower is an uphill task.
Refund Delays and Liquidity Crunches
Due process for GST refunds is often painfully slow. Businesses, especially exporters and those who have reversed excess ITC claims, can face extended delays in getting their funds reimbursed. This creates working capital issues, hampers operations, and hurts competitiveness.
Lack of Clarity and Frequent Changes
The GST law is still evolving, and tax authorities frequently issue new notifications, circulars, and rule changes. This deluge of information can be difficult for businesses to keep up with, leading to confusion, contradictory interpretations, and unintentional non-compliance.
Why You Need a GST Expert
Given the numerous complexities involved, managing GST in-house can be an uphill battle for most businesses. Even organizations with dedicated tax teams can struggle to stay on top of all the nuances.
That’s why an increasing number of companies are turning to professional GST consultants. By partnering with the right experts, you can enjoy several key benefits:
- Comprehensive guidance on all aspects of GST from registration to returns to audits
- Prevention of costly errors through proactive reconciliation and compliance checks
- Customized solutions tailored to your specific needs and challenges
- Peace of mind knowing your GST affairs are in order and liability risk is minimized
- Access to up-to-date information on regulatory changes and judicial precedents
- Relief from operational hassles so you can focus on your core business
- Potential for major cost savings through efficient ITC management and refund assistance
How Filingwala.com Can Be Your GST Problem Solver
Among the numerous consultants out there, Filingwala.com stands out as a GST solution provider you can truly rely on. Here’s why:
Full-Service GST Consultancy
With Filingwala.com, you get end-to-end support for all your GST needs – from registration, returns, payments and reconciliation, to periodic audits, assessments, appeals, and GST refunds. Our experts assist with any issue, big or small.
Automated GST Filing & Reconciliation
Filingwala.com harnesses the power of technology through its fully automated GST filing platform. It handles everything from data extraction and error checks to invoice matching and generating returns for filing. This minimizes human errors, saves time, and ensures 100% reconciliation.
Experienced Professionals & Customized Solutions
Every client engagement is handled by seasoned chartered accountants, tax practitioners, and legal experts with deep GST domain knowledge. We provide personalized guidance tailored to your specific industry, size, and challenges. This is not one-size-fits-all.
Why spend months trying to wrap your head around GST nuances or hire an inexperienced in-house team? By outsourcing it to the specialists at Filingwala.com, you can rest assured your GST compliance is in safe hands. This frees you up to concentrate on your core business.
Solve Your GST Problems Today
Don’t let GST hurdles hold your business back or make you vulnerable to tax demands and penalties. Take charge of the situation by partnering with Filingwala.com.
With our expertise at your side, issues like ITC mismatches, compliance errors, and refund delays will be a thing of the past. You’ll gain full visibility into your GST liabilities, plug revenue leakages, become audit-ready, and unlock trapped cash flow.
Solving GST evasion requires a multi-pronged approach. While the government strengthens enforcement and systems, businesses must play their part too. By improving compliance through expert assistance, you’ll not only secure your interests but contribute to India’s fight against tax fraud.
Contact Filingwala.com today for a free consultation on how we can support your business. Navigate the GST maze with confidence and peace of mind. Together, we can fix the GST bleed.
FAQs About GST & Filingwala.com
Q1. Why is GST compliance so complex in India?
GST in India has multiple tax slabs, a multitude of returns, complex rules for ITC eligibility, frequent changes in procedures and interpretation, and tech glitches – all of which combine to make compliance challenging. Lack of proper infrastructure and domain expertise also compounds the difficulties.
Q2. Will engaging a GST consultant be very expensive?
Not necessarily. An experienced GST partner can actually end up saving you much more in terms of avoided tax liabilities, penalties, interest, and operational costs. The efficiency gains and peace of mind also make it worthwhile. Look for transparent and flexible pricing models.
Q3. How can I ensure my business data remains confidential with a third party?
Filingwala.com follows stringent protocols around data privacy, confidentiality and security. We sign comprehensive NDAs with all clients and use enterprise-grade tools to protect your information.
Q4. What kind of sector experience does Filingwala.com have?
Our team has handled GST matters for a wide range of industries including manufacturing, services, e-commerce, exports, real estate, healthcare, and more. We customize our approach to fit your specific business needs.
Q5. Does Filingwala.com provide support beyond GST?
Yes, we offer a comprehensive suite of taxation and compliance services covering direct taxes, company law, foreign trade policy, intellectual property, payroll processing, and more. Think of us as your one-stop-shop for all legal and regulatory requirements.
Optimize your GST compliance, control costs, and avoid tax leakages. Contact Filingwala.com today!
