Letters to the editor

By: | Published: July 29, 2016 6:18 AM

Apropos of the edit “Progress on GST” (FE, July 28), it is indeed wise counsel that nothing spectacular on all counts should be expected of GST in the short-run. What is of utmost importance now is to extricate the parliamentary approval on the Constitutional Amendment Bill

GST take-off

Apropos of the edit “Progress on GST” (FE, July 28), it is indeed wise counsel that nothing spectacular on all counts should be expected of GST in the short-run. What is of utmost importance now is to extricate the parliamentary approval on the Constitutional Amendment Bill, paving way for the introduction of GST. Even after Constitutional Amendment Bill is passed, there are several legislative, administrative and infrastructural processes to be undertaken by the Centre and the states for actual implementation of GST. The GST rate would be decided by the GST Council and this can be done only after the Council is set up. All these are time-consuming. There are issues on the nitty-gritties of GST. Media reports suggest that there are serious differences between the Centre and the states on some crucial issues—like the administrative control on taxpayers with turnover upto R1.5 crore. Experts and industry bodies are sceptical of the intent and purpose of certain provisions of the Model GST Law. One criticism is that certain provisions relating to assessment and valuation of goods and services are unnecessarily harsh and not in tune with the ease and simplicity of implementation often assured by a comprehensive tax system like GST. Doubts persist on the timely availability and smooth flow of input tax credit given that the Model Law puts the burden of proof of payment of input tax upon the receiver. Some argue, given that GST is a new tax, the penal provisions, including power of arrest and prosecution are liable to be misused. In the face of all this it would be a huge achievement if the deadline of April 1, 2017, is adhered to.

TR Rustagi, Delhi

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition