GST Going to Create Extra Compliance Burden: Keshav Garg

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Chandigarh 19^th May:-Chandigarh based CA Keshav R Garg said that t​hey said GST will simplify the way businesses have been carried out in India. The biggest advantage which GST was supposed to give was relief from unnecessary litigations on classification of goods, tax rates and procedural aspects. Reality seems to be far away from the plans built in dreams. Yesterday GST council decided the rates of tax and fitted almost over 1000 goods in the rate structure of Nil, 5%, 12%, 18%, 28%. Such fitments would certainly lead to rise in litigations on classification of goods similar to those in present Central Excise Act 1944. Nothing has changed; tiny difference will change the rate of tax applicable on a particular commodity. For example, pulses if sold open would attract NIL rate whereas if the same pulses are packed and sold under a brand name, they shall attract 5% GST. Another instance is that where the chemicals are used as fertilizers they shall attract NIL rate otherwise same chemicals will be subject to 12%.  Does GST really intend to end the classification issues? Why it can't be that particular commodity irrespective of the manner in which it is sold/used shall attract same rate.  

Keshav R Garg said that toughness in of doing business that GST is going to create is the extra compliance burden in terms of 37 returns annually, matching concept, tedious Input Tax Credit Provisions etc. The law should be easily understood and implemented. Taxation law which is beyond the understanding of taxpayer will certainly lead to chaos once implemented.

He mentioned that non-coordination of the state and centre revenue authorities will also prove GST a nightmare for taxpayers. Despite these authorities required to work collectively under GST regime, they are conducting programs by and large separately without the participation from the other authority. It is necessary that both the state and centre authorities should conduct programs collectively in order to build that trust & confidence amongst the taxpayers that both of them have positive outlook towards GST. Such programs without the participation of both the authorities are misleading the taxpayers. Even today when we are so close to implementation of biggest business reform, taxpayers are not even clear about the levy and charge of GST upon them. 

The intent of GST to ease doing business is gone. From classification issues, cascading effect, faulty structures all are now imbibed in newly born GST.