FICO met New Principal Commissioner GST 

Ludhiana, October 5, 2021: A delegation of the Federation of Industrial & Commercial Organization (FICO) under the leadership of Gurmeet Singh Kular President FICO and Rajeev Jain General Secretary FICO met Vikas Kumar IRS Principal Commissioner GST Ludhiana and discussed the major issues faced by the industry related to GST Department and seek an immediate solution: 

Four Stage Verification for issuing Refunds:
It has been observed that the four stages of purchase are verified before the issuance of GST refunds. Even though the notices are being issued by the department for wrong purchases even when a party exists. It is suggested that the Refund procedure should be simplified. 

Adjustment of SGST, CGST and IGST paid under wrong heads: 
Our Prime Minister Mr. Narendra Modi said One Nation, One Market, One Tax for GST, but that does not hold true. The GST law provides that if inadvertently or otherwise, SGST or CGST has been paid as IGST or vice versa, the registered person should claim a refund for the same and again make the payment under the correct head. There should be a mechanism to allow the registered persons to adjust on their own in their returns. Even under VAT laws, if such an error happened, the commissioner had the power to make the adjustment at the back end on the basis of an application made to him by the taxpayer. 

Utilization of ITC: 
In many cases of the utilization of ITC, the taxpayer had to pay CGST although he has the credit of SGST available. GST being one nation one tax, set off of SGST may be allowed against CGST to further the ease of doing business and also ease the working capital requirement of the taxpayer, there being no loss to the revenue.

Restriction on claiming ITC:
Restriction on claiming of ITC of a particular year till the due date of filing September Return of the next Financial Year should be done away with and such restriction may be linked with the date of filing of the Annual Return of the concerned financial year as certain unclaimed/ short claimed ITC come to knowledge only while preparing/ filing of the annual return.

Anomaly in ITC
Procedure for allowance of ITC not appearing in GSTR-2A for the reason that the supplier declared the supplies as B2C instead of B2B due to an inadvertent error and reporting of ITC relating to earlier tax periods in subsequent returns. It is suggested that a separate row may be added in the return GSTR 3B to claim such credit basis which proper officer can examine such documents attached before issuing any deficiency notice/enquiry to the taxpayer to verify the claim of credit. 

Amongst present were Param Avtar Singh Gill Deputy Commissioner GST, Amanjit Singh Deputy Commissioner GST, Tejram Meena Deputy Commissioner GST, Vivek Rathee Deputy Commissioner GST, Basant Kumar Deputy Commissioner GST, Gurmeet Singh Kular President FICO, Rajeev Jain General Secretary FICO, Gagnish Singh Khurana Head Agricultural Implements Division FICO, Ashpreet Sahni Chairman CII Ludhiana & Organizing Secretary FICO, Advocate N.K. Thaman, Advocate P.K. Thaman, K.K. Garg President Induction Furnace Association, Sandeep Jain Senior Vice President Induction Furnace Association, CA Sumit Gupta President ITCA, CA Sumesh Chitkara, CA Vishal Garg Vice President ITCA, CA Rajeev K. Sharma Vice President DTBA Ludhiana, Raghbir Singh Sohal Head Plywood Division FICO, Gurvinder Singh Sachdeva Head Trade Division FICO, CA Avneet Singh Consultant FICO.