PUNE: The Confederation of Indian Industry (CII) has sought a further extension of the deadline to resolve certain system issues faced during filing of returns under the newly introduced Goods and Service Tax (GST) regime.

According to members, the GST Network (GSTN) is a single platform bringing together suppliers, buyers and tax authorities. "The Ministry of Finance has taken cognisance of the initial glitches being faced in online filing of invoices and extended dates for GST returns. The CII appreciates such support to the industry. The CII has now requested a further extension to resolve certain system issues," they said.

Citing examples, they said, "The Tran1 Form is filed for July to carry forward the closing balance of credits of June 2017, including date of issue and pending C/H/F/ forms. Accordingly, Tran1 calculates the liability of pending forms. However, in many cases, carry forwarded amount has been calculated in a negative figure. The CII suggests that the system response should be enhanced to allow download, preview details and take prints for reconciliation before submission."

The CII has further suggested that GSTR-3B should have provision for rounding off Input Tax Credit to the nearest rupee. "This will match output tax liability, which is rounded off and be accepted in the system. All modules of GSTN should be activated or enabled to amend core fields in registration to amend particulars of the principal place of business or to declare an additional place of business or file refunds," they suggested.

In view of these difficulties being faced while online filing, CII suggested that the due dates for filing GSTR-1, GSTR-2 and GSTR-3 should be deferred for another month or two. "This will stabilise the system. Further, there should be no penal action to be taken by the department in the initial six months of the GST launch. Meanwhile, alternate quick refund mechanism for IGST should be devised for exporters till the GSTN is ready to process these," they added.

However, GST Suvidhar Provider, Vayana Network has suggested that a further extension could pose a challenge to working capital management in companies. "As a result of the initial glitches that were being faced with online return filing, the due dates for filing GSTR-1, GSTR-2, and GSTR-3 have been extended. But with the system needing more time to stabilise, the CII has suggested a further extension. While an extension will certainly help organisations get accustomed to the process of online return filing, it could cause a challenge in working capital management," said RN Iyer, MD and Founder of Vayana Network.

According to him, a delay in filing will result in a delay in the calculation and refund of Input Tax Credit (ITC) increasing the need for financing across all industries. "We have been working towards enabling our customers with the intelligent application of technology to ease out their challenges with quick and affordable financing options. Apart from short-term trade financing options, VICAS (Vayana Invoice Confirmation and Acceptance as a Service) helps our customers conduct real-time invoice matching and reconciliation to help them get better clarity on their ITC," he said.