The implementation of GST, has probably been the biggest taxation reforms in independent India. Besides uniting the country under a single tax regime, the roll out of GST has also laid the path for the formalisation of the economy. As per the Economic Survey 2017-18, GST has helped expand the indirect tax base by at least 50 percent. The Survey estimated that of the then 98 lakh GST registrants, 34 lakh were new taxpayers. Since then, the total number of registrants under GST has increased to just over one crore.
A registered GST taxpayer, identified by a valid GSTIN, is entitled to collect tax on behalf of government from the consumers and deposit it to the government system. However, not every person/business is registered under GST and not every registered GST taxpayer can collect tax. One such type of taxpayer are the composite dealers, a manufacturer or distributor with an annual turnover below 1.5 crore (exemption threshold increased from 1.0 cr to 1.5 cr in 32nd council meeting), who pay a fixed percentage on their turnover and are not entitled to collect any tax through the sale of goods.
The government has mandated the display of GSTIN in business premises and tax invoices. However, many cases have been identified in past 2 years where businesses, knowingly or unknowingly, have charged GST to their customers despite having opted for the composition scheme or being unregistered.
So, is there a way to know if a GSTIN is eligible to collect tax?
IRIS Peridot, a smart GST analyser by IRIS Business Services Ltd. helps users to verify the correctness of a GSTIN by validating it with GST system. Once validated, the information about the taxpayer such as place of business, taxpayer type etc is available to user. Additionally, the user can also check the tax compliance of the taxpayer as the application displays a month wise returns filing status.
What makes Peridot unique is its ability to scan the GSTIN instead of need to type. All a user needs to do is scan a document or surface with GSTIN number and the app identifies GSTIN from any cluster of text. Once identified, the GSTIN is checked with GST system on a real time basis.
As a consumer, the app can be used to check whether the tax collected by the business, that we paid for our purchases of goods and services, is deposited to the government or not. Additionally, the app helps consumer with following information:
- Additional Place of Business Details
IRIS Peridot includes POB (Place of Business) details in addition to principal place of business. This helps the user to know which other establishments belong to the same GSTIN.
- Know if Business is Eligible to Collect Tax
As we said earlier, not all GST registered taxpayers are eligible to collect tax. Now when you search a GSTIN, IRIS Peridot will tell you the taxpayer’s eligibility to collect tax.
- Report Non-Compliance
What more, now you can report any non-compliance by any of the taxpayer directly through the application by either mail/call or using app template without disclosing your identity.
IRIS Peridot for Business
IRIS Peridot is a companion to not only consumers but to businesses as well. In the GST system the liability of the vendors’ tax compliance also falls on the business in case it wants to claim ITC. If a counterparty is not filing returns, business cannot claim ITC. IRIS Peridot comes handy in such scenarios. For a B2B trader or businessperson, the app is a handy tool to determine whether the seller from whom he is procuring goods or consuming services is compliant with his tax filings. This will determine the traders’ ability to claim Input tax credit.
The responsibility of driving compliance is not just with the government but also with us citizens. The pressure of the consumer will make a seller more responsible for collecting and depositing taxes on time. IRIS Peridot helps build awareness by giving the citizens a simple and ready to use app with a single click.
With over 15,000 downloads and over 10,000 active users , IRIS Peridot aims to benefit every consumer paying GST, and put an end to tax evasion.