Simplified GST return-forms to be introduced: But total overhaul necessary for voluntary tearless compliance and to avoid tax-evasion

Kashmir Times. Dated: 6/13/2019 1:26:24 AM

Dear Editor,
It refers to prototype of new simplified return filing system for Goods and Service Tax GST put in public domain on 22.05.2019 considering problems faced in existing GST system. But multiple types of forms will further confuse and complicate the system. Otherwise also, complete GST system including rate-structure and Input-Tax-Credit system for voluntary tearless compliance and preventing existing large-scale tax-evasion. System should for tax-deposit on monthly basis but return-filing on quarterly basis. Only other return should be an annual return. In case experiment is not successful, then it can be reverted back for monthly filing.
There should be just two GST-rates of 10 and 30 percent. Rates of 0, 3, 5, 12 and 18 percent should be clubbed in a slab of 10-percent. Abolition of lower rates clubbed with abolition of slabs of 12 and 18 percent in a uniform 10-percent slab will be of ultimate advantage to consumers. Higher slab of 30-perecent can be there for commodities of long-lasting use irrespective of price-structure. Cess-system on luxury items should be replaced by additional slabs in multiples of 50 or 100 percent.
Input-Tax-Credit ITC is most misused way of GST-evasion by manufacturers. With suggested lowered uniform 10-percent slab, ITC system may be retained only for traders abolishing it altogether from manufacturing and service sector. Presently manufacturers purchase left-out GST bills for falsely claiming ITC. Such reforms if implemented in consolidated manner will relieve all concerned and provide much more revenue to public-exchequers.
—Madhu Agrawal,
1775 Kucha Lattushah
Dariba, Chandni Chowk Delhi.



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