GST New Rules: E-commerce companies and small and medium enterprises (MSMEs) are expressing concern about the new Invoice Management System. According to sources, this system will increase their compliance burden and also increase the cost.
GST New Rules: Let us tell you that the government has introduced a new invoice management system to make the GST system more transparent. Its purpose is to prevent tax evasion and simplify accounting. But, e-commerce companies and MSMEs say that this will increase difficulties for them in paying taxes and resolving disputes.
MSMEs and e-commerce companies believe that the new invoice management system is complicating business instead of making it easier. The government needs to address the concerns of small traders by making it simpler. Talks are going on between the GST officer and the industry, which may lead to a solution soon.
What are MSMEs and e-commerce companies saying?-
Burden will increase:- Companies say that a lot of paperwork will have to be done in the new invoice system. This may cause problems for small companies and startups to manage their operations.
Costs will increase-
E-commerce and MSMEs will need to hire additional tax advisors and accounting teams, which will increase their costs. Earlier, where companies could manage their invoices themselves, now due to the new rules, they will have to spend more resources.
Liability will increase due to rejected credit notes-
If a credit note is issued on a customer’s purchase and the invoice system rejects it, then additional tax liability may arise on MSMEs. This will affect their cash flow.
There will be delay in resolving customer disputes-
Earlier companies could resolve invoice related problems of customers at their level, but now they will have to go through a long process under the new system.
This may delay customer refunds and dispute resolution.
There will be delay in determining tax liability-
Many MSMEs and e-commerce companies are saying that it will take more time to determine tax liability in the new invoice system. This may cause delay in filing GST returns, due to which companies will be at risk of penalty.
Discussions continue between government and industry-
Discussions are going on between GST officials and representatives of the industry regarding this new invoice management system. The government is trying to simplify this system for traders, but no concrete solution has been found yet.
What can happen next?
The government can make some changes in this system, so that compliance of MSMEs and e-commerce companies becomes easier. There is a possibility that the government may issue some new guidelines to determine tax liability quickly and speed up the dispute resolution process.
Most Read Articles:
- BSNL Holi Dhamaka Offer: BSNL’s new cheap plan offers 425 days validity and 2GB data per day, check plan details
- Toll Tax: FASTag will no longer deduct unnecessary toll! ₹1 lakh fine for wrong deduction!
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
