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Vehicle registrations hit the software barrier

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WITH the Regional Transport Office (RTO) here undergoing a software update to migrate from Value Added Tax (VAT) to Goods and Services Tax (GST) for registering new vehicles, vehicle registration has come to a standstill. Though sources said the situation should return to normal in the next few days, new vehicles in the city yet to be registered face the risk of being stolen. Without registration, owners and police would find it hard to retrieve any stolen vehicle. GST, which combines all levies into one, has apparently shown up the unpreparedness of the RTO in making a smooth transition.

 Speaking to Express, M Aadhavan, waiting for his two-wheeler registration, said, "I booked a bike in May and was assured it would be delivered by the first week of July. It was not delivered in the promised time. Shifting to GST is has stalled the entire registration process for vehicles." He added car and bike show-rooms were not sure of actual delivery dates since all new vehicles have not been registered with the RTO. An employee of a two-wheeler show-room in Tiruchy stated that following GST implementation, most pre-booked bikes are still in showrooms as RTOs have stopped register-ing new vehicles until the software upgrade is completed. An RTO official told Express, "As the Union government implemented GST recently, our systems are still accustomed to handling only VAT and are yet to completely migrate to GST slabs. All new vehicle registrations have stopped in RTOs till computer systems are updated with new software to handle GST." He said the situation would improve in the next few days as RTOs in Delhi have migrated to GST and in the next phase, those in Tamil Nadu would fol-low suit.

TRANSPORT officials assure that the transition will be done soon and issues will be solved. Speaking to Express, a State transport department official said the problem was due to the different tax slabs (including cogs) for various categories of vehicles, unlike the earlier taxation system. The official also shifted the blame on to dealers. "Several of them are unable to produce an in-voice incorporating the GST rates. Instead of seeking clarifications from the Commercial Taxes department and updat-ing their own systems first, they are unfairly blaming the RTOs," the official said.
Source epape r . d inaman Com/c/20504310

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