Draft GST Formats-Some Observations

As professionals, part of the public service obligation in my view, is to go through draft proposals and try to refine/improve it. In that light, I decided to read the 70pg GST forms/rules, and find out any issues. Below are my observations.

Form/Rule	Observation	Suggestion
FORM REG GST-1- Application for Registration under Section 19(1) of Goods and Services Tax Act, 20	Trade name is asked also as an optional field. Address contains latitude/longitude which might be used for apps/mapping. Reason for registration is sought including merger etc Nature of premises ownership is asked including shared/Consent-this might be a risk mapping factor DIN/Aadhar/PAN/Passport Number is asked for details of KMP, besides citizenship-helps cross matching	Name of Father/Mother instead of Name of Father
FORM GST REG 26-Form for Field Visit Report	Physical verification report has photograph of place with person present at verification time as also details of open, covered and, floor on which business done.	It ensures the person has visited the place, and gives details of the person interacted with. If only there is a similar facility for Swatch Bharat Abhiyan, things would be much better
Rule 1[e]Tax Invoice	name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is unregistered and where the taxable value of supply is fifty thousand rupees or more-This provision will help curb URD menace and the bill to/ship to scam	The invoice should also include the PAN number of the unregistered recipient, so that it is easier for the government to track. Name/Address alone with end up in a physical/manual reconciliation

Sharekhan Ignite Trading Guarantee-the caveats render it usless

I got an email from Sharekhan offering a 1yr trading education program, with the claim that they are so confident in it, they will absorb the losses on your first 40 trades! However, while reading the full offer, I saw the below fineprint. Lesson learnt-ALWAYS read the fineprint

http://www.sharekhan.com/IgniteDisclaimer.html

1	Total 40 trades to be taken under “controlled trades” in Ignite TradeTiger.
2	All trades will be intra-day (compulsory square off by 3.15pm).
3	Trades to be taken in cash segment only and in BigTrade scrips only. They are not confident enough to extent the offer to F&O/Commodity segment, or even to smaller scrips. Just shows their faith.
4	Order entry by bracket order only, i.e. entry, target and stop loss to be entered initially.
5	Maximum loss per trade will be Rs125. Position size will be decided accordingly by the system. For eg. if long entry is at Rs100 per share and stop loss is Rs99, then risk per share is Rs1. Position size in this case would be Rs125/Rs1 i e 125 shares. That means even if ALL 40 trades end in loss, their max risk is Rs 125*40 or Rs 5000. Do remember they would earn a minimum of 25-50 Rs in brokerage itself, so their risk is much less
6	At the end of all 40 trades, cumulative profit / loss will be calculated. If there is a net loss at the end of 40 trades, Sharekhan.com India Pvt. Ltd. will reimburse the loss to you. SO there is a setoff but no capping/retention of profit to you
7	For the purpose of profit/loss calculation, only market price of entry and exit shall be considered, i e other trading costs such as brokerage, STT etc will not be included. For small positions with max loss of Rs 125, these costs often equal the profit
8	To get the reimbursement, you will have to take all 40 trades in your account. The time limit for taking these 40 controlled trades is the end of the calendar month following your Certified Trading Professional course, i e if you have enrolled for the Certified Trading Professional course in September 2013, then the time limit for doing the 40 controlled trades will be till October 2013.
9	All the trades have to be as per Online Trading Academy’s core trading strategy that will be taught in the Certified Trading Professional course.
10	At least half of these trades must be as per trading calls given by the Ignite research team. The remaining trades can be based on your own analysis (using Online Trading Academy’s core trading strategy).