As we all know that WMTPA, Western Maharashtra Tax Practitioner’s Association, which has called a nation-wide protest for tax reforms on 29th January 2021 against the rigid approach of Government is getting huge support from across the country. Several associations from all over the country has joined in the movement.
Regarding this protest CA Kalpak Kaplash on Sunday morning had a discussion with Shri Narendra Sonawane, the national President of the All India Protest Committee.
Narendra Sonawane Ji hailing from Pune needs no introduction. He has been the past president of the Western Maharashtra Tax Practioner’s Association (WMTPA). Presently he is also on the management committee of the Goods and Service tax association of Maharashtra. He is also an active member of the management committee of the All India Federation of Tax Practitioners.
Therefore, who can be better to tell us about this protest than the man behind this movement.
Let’s hear straight from the man of the moment, Shri Narendra Sonawane Ji.
Interview with Shri Narendra Sonawane, President of All India Protest Committee
Taxpyramid: First of all, congratulations to you Sir, for your efforts in bringing together everyone and creating such a huge nationwide platform where the real issues which are being faced by tax practitioners and businesses in GST are being taken up.
Thank You Kalpak. This is in fact teamwork where the whole team is putting in a lot of effort.
Tax pyramid: I know you guys are working very hard for this protest. So how the preparations are going on for 29th January?
We are on our target. Team WMTPA (Western Maharashtra Tax Practitioners Association) and core group members are working very hard to make this successful. The complete detailed program has been circulated among all associations and we have asked them to follow it strictly. Moral of the whole team is very high. Hope for everything to go smoothly in the planned way.
Taxpyramid: Kindly tell our readers what this protest is all about? What points are we raising through this protest?
Well, this protest is against
- The rigid approach of government against professionals and businessmen which needs to be changed
- Unstable GST
- Denial of input tax credit
- No provision to revise GST returns. This is one of the main problems of every professional and businessman.
- Midnight rain of notifications. All the changes should be provided in Budget as was done in previous tax regimes. The GST Council meeting is held after every three months and every time they are bringing major changes through amendments and notifications.
- The other main point we are highlighting is excessive power given to authorities. For non-filing of returns of a few months, the authorities straight away cancel the registration or block the credit. They can levy penalty but cancelling the registration is like almost stopping any person to carry on his business. And you know it very well that if the registration is cancelled, then it is like ending the business.
- Like there is Suo moto cancellation of GST registration but there is no Suo moto restoration of it. Even after filing all the returns, paying interest and all penalties it takes even more than seven days to restore the registration. During this period of cancelled registration, he cannot claim ITC for the purchases, it ruins his brand or name in the market and affects very badly the business and even the future growth
- Then there is the regular failure of GST portal
Taxpyramid: Through this protest, you have touched upon a very important issue of a number of compliances a businessman or a tax practitioner is forced to do in each month. Every month is almost packed. He just keeps on filing returns and doing compliances every other day. How do you see this?
Our main demand is that all the compliances for the year and all the due dates should be communicated at the start of the year say on 01st April. So that we practitioners can plan it according to that. There are so many due dates in a month with such a tight schedule and then you make changes in it every other month, just imagine from a tax practitioner’s point of view. It becomes almost impossible for him to do all these compliances at such short notice.
Besides also look from a trader’s point of view. If there are ten to twelve compliances in every single month then even a small trader would have to appoint a person as an accountant and his cost increases.
Therefore, the number of compliances should be reviewed, and also there should be no overlapping of due dates. They should be decided and fixed once for the year.
Taxpryamid: Staging a protest at the national level. How did this idea was actually conceived? When did this occurred to you that “Let’s finally do it?
I have been watching silently for the last three and half years the way this Act is implemented and changes brought every now and then, the pain of professionals, trade, and business. A huge amount of late fees, interest, and penalties are being levied and that too not for non-payment of taxes but for not making compliances in time. Many times, they are suffering not because of their fault but because of loosely drafted law and poor working portal. On 29th December, when CBDT extended the due dates just by 10 days, I thought now the time has come to bring all stakeholders together for a wake-up call for all stakeholders.
Taxpyramid: You are getting tremendous support from all over the country. Various state and national level associations have vowed to join in. As far as I know, there are 69 different state-level associations that have joined the protest so far. And the number is growing by each day. So how do you feel at the tremendous support this protest is drawing and what does it mean?
So far it has been 83 associations and that is a huge support undoubtedly. It makes me nervous and at the same time makes me feel sad to think how much pressure our trade, industry, and professionals must have been working under. They were angry and waiting for some platform to let it out. We are trying to give a platform to make their concerns being heard.
Taxpyramid: The protest is not against the government. It is against the approach of the government. You have said it time and again. Would you like to elaborate it, a little to help our readers understand the difference between the two?
Yes Sure, we are not against Govt and not against any law, especially GST and income tax. We are against the rigid approach of Government, frequent changes which cannot be justified, look at the number of due dates in every month, there are no holidays for professionals and trade, industry, poor infrastructure and the list just goes on.
Taxpyramid: The protest I think has already achieved a lot in terms that it has already brought together so many people across the nation. People are facing a lot of difficulties in GST era and have been raising these things individually at their level. It was visible over social media.
They needed a voice, they needed a platform. you have provided that through this event. It’s like a fresh lease of hopes that they might be now heard.
According to you how would you measure the success of this protest? What would be those milestones which you would sit down and say look it has achieved this?
Our target is and it should be that all the concerned parties without any pressure easily and happily complete all compliances. We want to eliminate the current situation of pressure and stress which is making working very difficult for the practitioners as well as the businesses and trades.
Taxpyramid: The other thing about the campaign that catches the attention of everyone is when it says that it is a protest and not a strike. So everyone can join in this. Your thoughts regarding it.
Yes, it’s a Protest. It will be a wake-up call not only to Government but to all the concerned authorities to bring all the possible changes that could make it actually good and simple.
It’s not a strike that makes any loss to the government or to the nation. We all are law-abiding citizens who are trying to convince government authorities regarding our concerns in a very democratic way by arranging the Protest and submitting our representation to our Honourable Finance Minister.
Taxpyramid: How difficult is it to bring all these associations, traders, advocates, chartered accountants and people from different backgrounds all together?
Yes, it is a little bit difficult bringing everyone together but we have to try our best to convince them. We tried to tell everyone “Abhi Nahi To Kabhi Nahi”
(If not now then never). And now everybody understands that Unitedly we only can make compulsion on Government to bring suitable changes in law and in implementing the right procedures.
Taxpyramid: On 23rd January a delegation including you have met Shri Dr. Amol Kohle Ji, Member of Parliament from Pune regarding this protest. So what were his views regarding the planned all India protest and also towards the demands you have been raising?
We are happy that he was very positive and patiently heard about our demands. He in fact assured us that he will raise our demands even in the parliament. I would also request everyone to please start meeting your local MPs and start taking our issues to the biggest parliament of the world “Sansad Bhawan”.
Taxpyramid: One thing our readers would like to know is whether it is going to be a one-time effort or you would be following it up with more such events or similar efforts to achieve the purpose. How would you do that? I mean what’s there on the road ahead?
Right now, we are concentrating only on 29th January 2021. After that we will observe the response from concerned authorities and then decide our plan in our Core committee. And then would surely let you know.
Taxpyramid: Now on a personal front, How challenging it has been to you till now to organize such a big protest. We know that you are very busy on the professional front due to your practice and other engagements. Obviously, we both know how hard it has been stealing time even for this interview.
Yes, it’s very difficult but planning in a disciplined manner and team work make things easier. Full credit goes to our wholehearted devoted team of WMTPA. Past experience of arranging national tax conferences has also helped.
Taxpyramid: Section 16(4) of the GST Act and Rule 36(4) of CGST Rules have already posed a lot of difficulties for professionals and businesses regarding input tax credit utilization. And now the introduction of Rule 86B seems to have added to the misery. How do you see it?
The worst time for a professional and business, there is no intention to pass on the ITC smoothly. There is no need to ask any astrologer about the future of small traders, MESMEs and professionals. Where are GSTR 2 and GSTR 3. Now, we are reconciling data in 2A and 2B. It’s very difficult to digest that to avail one’s own credit one has to go through so many restrictions. Seamless credit of ITC now seems a distant dream in GST.
Taxpyramid: There has been a lot of Stress among tax professionals as has also been mentioned in your video. Unhuman return filing targets, non-resolving issues with the portal, complicated structure, and voluminous work in the multi-layered monthly return filing process.GST Practitioners are finding it really hard to cope up with all these. GST was marketed as a great reform with huge scope. Do you agree that GST practice has lost its sheen?
What would you say to those professionals who are really low on morale due to the GST system?
All this is true. That’s why this protest becomes all more important. Every possible effort we are putting in is to make this GST system simple
Besides that I would also say to professionals that don’t worry. These days will also pass and soon with a united effort, we would conquer these problems.
Thank you so much for your time, sir. It has been wonderful talking to you and getting to know your views, Sir.
Wish you all the best in your endeavors. Taxpyramid sincerely hopes that with your efforts we achieve the GST Reforms, we all are looking for.
CA Kalpak Kaplash
