gst in india  

VAT Service Tax India
Service Tax New Delhi
Central Excise and Service Tax
Service Tax Cenvat
Service Tax Exemption
Service Tax Tribunal

Justification of GST
Preparation for GST
Purchase Tax of GST
GST Rate Structure
VAT at the Central & State level
Goods & Services Tax Model For India
Central and State Taxes under GST
Special Industrial Area Scheme
Inter-State Transactions of Goods
Rules for CGST and SGST
Implementation of GST

GST - Common concerns

Advance ruling and DDQ:

  • Presently, the Indian entities are not eligible to get advance rulings under Service tax/Central excise/Customs law.
  • If an Indian tax payer wants to know its tax liability in advance before starting a business, there is no such mechanism available, whereas, a person coming from a foreign country can have such advantage at a nominal cost. This is not the case for getting a DDQ in the case of State VAT.
  • It is a strong case under GST to allow all the tax payers to go for the advance ruling, Moreover, in order to enhance its utility, the advance ruling must be given within 3 months maximum from the date of filing application.

Part payment of demand for admission of appeal:

  • The undue demand raised by reckless authorities compel tax payer to prefer an appeal against the vexatious order of such authorities. Many a times courts have highly condemned such behavior.
  • Under the present tax system, tax payers have to pay such undue demands first to get the justice , which many a times deter the tax payer to prefer an appeal and surrender to high pitched demands in order to buy peace of mind.
  • Moreover, even if the order is in favor of the asseessee, it is almost impossible to get the refund from the department of pre-deposits.
  • The assessee has to make a separate appeal for waiver of such predeposit, which consumes lot of precious time of courts and tax payers.
  • In order to avoid such unjust situation, the condition of pre-payment of disputed tax liability should be done away with, for preferring an appeal.

Tax payment due dates:

  • At present there are different incidences of attraction of different taxes and different due dates for making payment of the same.
  • The due dates should be as per average market credit period or in the following month of receipt of payment.
  • Alternatively, the tax payer should be allowed to choose suitable accounting system to discharge tax liability with suitable checks.
  • Moreover, the due dates should be kept not before the second fortnight so as to enable the tax payers to compute their taxes accurately.

Simplified procedures / compliances for small dealers:

As a measure of taxpayer friendly exercise, simplified procedures should be introduced for small dealers like as under:

  • Annual return to be filed only once in a financial year
  • Reduced/ composition rate/amount: Either a lower composition rate may be introduced or a lump sum amount to avoid hassles of maintaining books of accounts
  • Summary assessment : Assessment to be done without calling for books of account
  • No visits by the departmental officers without specific information of evasion

Check posts:

  • The concept of Check post introduced by various State governments has a substantial nuisance value without any corresponding benefits accruing to them.
  • Enormous times gets wasted at check posts during the transit of goods from one place to the other which impacts heavily trade as well as consumers (in terms of higher prices) especially, in cases of perishable commodities.
  • In the destination based tax system, the States will be more inclined to establish check posts at the entry points in the States. However, a better trade friendly system may be introduced in the place of Check posts.

Amendments in the law:

  • At present a lot of changes are brought in the law/rate/procedures by way of circulars/notices/notifications/amendment Acts, etc almost on a daily basis. Moreover, a fair amount of ambiguities are created by bringing retrospective amendments during budget sessions.
  • This results in uncertainties and chaos in business and industry. So much so as it acts as a deterrent to many foreign investors who do not want to risk their funds in no tranquil economies.

Advanced IT support:

  • It is essential to establish a robust and advanced IT infrastructure before GST is introduced to address the concerns of interstate transactions for cross verification transactions and minimal dependency on issuance / production of various declaration forms.
  • In case of any declaration forms, the coverage period should be quarterly or annual.


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