GST: Does this system promise docile taxpayers and dragons of tax evaders?

DECEMBER !" !#
By $ %alanis&amy" DC 'Commercial Taxes( Retd
T)E one and only novelty in GST is the *ninterr*pted +TC across the co*ntry" ,*t the
mechanism of transfer of the same in respect of +TC is a tremendo*s -o, partic*lary in the
context of the +ndian dealer.s psychology/ The lo&er t*rnover ,rac0et is irresista,ly prone
to tax evasion &hile the higher t*rnover ,rac0et is nat*rally prone to tax avoidance/
1nless or *ntil the entire chain of dealers and tax offices are f*lly comp*terised and
manned ,y technical staff" the dream of implementing Canadian model of GST &ill lead
to catastrophic conse2*ences" creating *neven level3playing field of docile taxpayers and
dragons of tax evaders/ The s*ccess of GST is directly proportionate to the *niformity in
rates of taxes and in compliance level of the 4ct in tr*e sense and any childish differences
among the States as in interstate &ater&ays" &ill definetly delay the process of getting the
fr*its of the GST/ The conf*sions that sprang d*e to introd*ctions of 54T" among ,oth
the dealers and the officers" still hanging as a mist in the s0y of taxation and therefore the
hastiness in introd*cing GST" &itho*t cons*lting the field level officers and dealers &ill
ta0e *s to a taxing tra*ma/
The second aspect is the area of exempted goods" the playgro*nd for political parties and
pse*do faith that the taxes alone decide the price index of the commodities/ The real
reasons for price ,*oyancy of any goods depends *pon demand and s*pply" clever moves
of the trader and spec*lators" *nimaginative control of the State agencies and periodical
s&ings in petro3diesel prices/ 4nd therefore the tax component is defnitely immaterial
,efore all these factors/ The gen*ine trader or cons*mer is not ,othered of 6 7 tax" &hile
the ingen*ine and the ha,it*ated tax evaders sho*t lo*der over taxes/ The Central
Government" either ,y dictation or ,y dignified re2*est sho*ld ma0e all the States to
narro& do&n the exempted goods ,elo& !8 items other&ise the concept of GST &ill ,e a
diffic*lt tas0 for a minim*m s*ccess of GST implementation/
The third aspect that the prescription of common provisions in the ret*rns to CGST and
SGST &ill lead to disp*te and -*risdicational conflicts ,et&een the State and the Centre"
in as m*ch as" the controversy in concl*ding &hether a transaction is a service or sales is
still in flames in the tax office and in vario*s co*rts of +ndia/ The provisions of the 4ct
therefore sho*ld ,e framed in s*ch a &ay that they are simple" *nderstanda,le ,y any
common man rather than a testing gro*nd of legal -argons of the framers of the la&/ 4ny
one of the agencies may ,e allo&ed to levy tax on a given t*rnover and ,oth of them
sho*ld not ,ecome h*ngry tigers targeting the docile la& a,iding tax payer/ The draft
4cts sho*ld ,e circ*lated atleast for six months entertaining s*ggestions" criticism from
all concerned across the co*ntry/ Seminars and meetings sho*ld ,e arranged and the
feed,ac0 sho*ld ,e ta0en to the Government notice and they sho*ld not ,ecome a
ceremonial one &asting the time and energy of the people and officers/ The 4ct sho*ld
not ,e a hasty o*tp*t of some of the officer sitting in ivory to&ers" &ho have no
0no&ledge at all in the c*tting edge level and so on/ The first disc*ssion paper" ,y all
means" is not eno*gh and on contrary " the draft 4ct of CGST and SGST of the States
sho*ld ,e in air and gro*nd for a minim*m period of six months ,eca*se this is going to
,e the *ltimate taxation destiny of +ndia connecting the entire co*ntry thro*gh
*ninterr*pted +TC chain/
The inverted tax policy of 9origin tax9 to 9destination tax9 is *npredicta,le in terms of tax
reven*e tilting do&n the existing level of flo& of tax/ The small states may" ,ecome
financially sic0 and toothless and have to depend *pon the Centre/ 4 ne& team of officers
&ith techsavy ,lood is indespensa,le for s*ccess of the GST/ 4ny slac0ness and sleepy
mode either on the part of the enforcing agents or on the part of the assessee &ill
definitely lead to irretrievea,le enigmas and event*al fiscal fatig*es and fail*res/