Radical Invoicing ? No , just Logical !
---------------------------------------
Business
Line ( 19 Sept ) carries following news :
Highlights :
At the heart
of the first proposal is the recognition that the invoice – which validates every sale of goods or of a
service – is the main document in any transaction and can
capture the value chain and the tax.
The invoice has
all the details the taxman needs:
·
the names of the seller and the buyer,
·
the supply date,
·
a description
of the goods or service,
·
the value, and
·
the tax.
The
Committee has proposed that each invoice bear a ‘distinct invoice number’
(DIN), which will be obtained by the seller, if necessary in bulk, from the GST
server, and used serially.
The buyer of
the goods or the service must cite the DIN when he, after value addition,
raises his own invoice (with its own DIN), to claim a tax credit.
Since both
the invoices are uploaded in the GST server, the two can be matched.
For B2C
transactions, the proposal is for every citizen to obtain a ‘consumer number’.
After a
transaction (say, eating at a restaurant), the consumer
can log on to the GST portal and match the DIN (cited
in the restaurant bill) with his/her consumer
number.
That
validates the fact that the consumer paid GST on the transaction; if no GST is
remitted against the DIN, the seller (restaurant owner) will be punishable.
In turn, the
consumer can be rewarded for his troubles, perhaps in the form of tax
concessions.
While
welcoming this ( belated ) realization of the need for simplifying the GST
process , I urge the “ Committee on Invoice “ to consider my following
suggestions :
Jan
Dhan Sarjan Yojana ( 31
Aug 2015 )
By launching , Jan Dhan
Sarjan Yojana
( People's Wealth
Creation Scheme )
As follows :
* If
GST is going to be ( say ) 20 % , Government will transfer from this ,
2 %
( ie 10 % of that 20 % ) , to the PPF account of the Consumer /
Buyer , who pays for the Goods / Services purchased , using a RuPay
Card
or a " Mobile Wallet " app
This
will motivate millions of self - employed to open PPF accounts !
* Since
interest from a PPF account is tax-free , every citizen would , now
want
to make all payments thru RuPay card or a Mobile Wallet App
* RuPay
cards are already tied up with accounts opened under Jan Dhan
Yojana
* Mobile
Wallets Apps will also get tied-up with thousands of branches of
Payment Banks , which will open in next 18 months
Just
imagine the number of new accounts that will get opened in the
1,55,000 + post offices of India Post !
* In this way ,
Social Security will become " Self Financing " !
* Currently
, in India , some 97 % of all payments are " Cash Payments ".
With
introduction of this proposal , these will drastically decline
* Any
payment made , using RuPay card or a Mobile Wallet App , will make
available to the Income Tax Department , full digitized record of each
such
transaction , including :
* Who
made the payment
* To whom was that
payment made
* When was
that payment made
* For what purchase
, was that payment made
*
What was the amount paid
* One ,
very desirable consequence of Jan Dhan Sarjan Yojana
will
be that our " Domestic Savings Rate " will climb back to 30
% !
In turn , this will help us wither global economic crisis , much
better !
When
BHIM is here, can ARJUN be far away ? [ 30 Dec
2016 ]
Dear Shri
Amitabh :
Like you ( and of course ,
Shri Modiji ) , I have a great faith in the ability of Indian software
engineers ( local or NRI ) to come up with revolutionary solutions /
innovations !
Just ask Sundar
Pichai , Sam Pitroda , Satya
Nadela , Sachin Katti , Pranav
Mistry , Sanjay Sarma , Nandan
Nilekani etc , if they will help implement the following :
* Buyer buys
something worth Rs 100 from a shopkeeper
* Buyer and the Seller
, look into their own mobile-cameras ( of smart phones
loaded with
M-Rup ) for biometric Aadhar identification / linked to Jan Dhan a/c
* Seller speaks
in his mobile : " Muze Sau Rupiah dedo "
* Buyer speaks
in his mobile : " Inko Sau Rupiah dedo "
* Message flashes in
the mobile screen of Seller : " Tumhare account-me Sau Rupiah
Jamah ho gaya / GST bhi kaat ke Sarkar-ko bhej
diya "
* Message flashes in
the mobile screen of Buyer : " Tumhare account-se , Sau Rupiah
inko
Bhej Diya . Abhi
balance me teen sau sath rupiah bacha hai "
I request all concerned , not
to insult our engineers / scientists / geeks , by doubting if such SIMPLIFICATION ( based on day to day spoken language ) is possible
This is the only way rural
India can bypass the Jurassic Age of Plastic Cards to usher into a CASH-LESS society !
22 Sept 2018
www.hemenparekh.in / blogs
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