FCA, FCS, LLB, B.Com (Hons)
Executive Director of A2Z Taxcorp LLP
Chairman of Indirect Tax Committee of PHD Chamber of Commerce
Member of GST Committee of ICAI, ICSI, Assocham, CII, FICCI
Chairman of Corporate Advisory Committee of IPEM Group This page will provide ready platform to know all about GST being a comprehensive tax, should prima facie subsumed all other indirect taxes such as Excise du
ty, Service tax, Central Sales Tax (CST), State-level Sales tax/ VAT, Octroi/ Entry tax, stamp duty, telecom license fees, turnover tax, tax on consumption or sale of electricity, taxes on transportation of goods and services, etc., thus avoiding multiple layers of taxations that currently existing in India. tax is collected on value-added goods and services at each stage of sale or purchase in the supply chain and allows the set-off of GST paid on the procurement of goods and services against the GST which is payable on the supply of goods or services. However the end consumer bears this tax as he is the last person in the supply chain. The GST should consist of following principles:
• Uniform rate of taxation within a specified and given jurisdiction.
• Sales would be taxed under the destination based principle.
• Low costs of compliance and administration.
• A substantively common tax base for Central and state governments.
• Substantial Co-operation in tax administration between all levels of government. Challenges to address:
• Integration of a large number of Central & State Taxes – multiplicity of taxes and tax rates.
• Will GST would be multi point levy or levy at final consumptions.
• Power to levy and collect taxes – necessary constitutional amendments.
• Rationalisation of thresholds and exemption limits.
• Operating a seamless input credit system – no cascading.
• Integrating the origin based tax with the destination based GST.
• Standardisation of systems and procedures.
• Efficacy and integration of broad based computerizations across the Nation.
• Dispute settlement procedure and machinery.
• Training of tax administrators and assessee.
• Protecting and balancing the present and future revenues of the Centre and the States.
• Safeguarding the interests of less developed States with lower revenue potential.
• Treatment of exemption allowed in excise, VAT, etc.
• Treatment of chargeability of Alcohol, to***co, petroleum products which are likely to be out of the GST regime.
• Various other issues like inter state transfer of goods, cross border taxation of services, place of taxation, timing of taxations, etc.
