Madurai

‘SC order a game changer in GST implementation’

Agrofood Chamber of Commerce and Industry president S. Rethinavelu has said the Supreme Court judgment that the recommendations of the GST Council are not binding on the Centre and the States, but only have a persuasive value, is a game changer in GST implementation.

He said the judgment had cleared the myth that the GST Council was “all powerful” to decide on all GST-related issues. Though trade and industry welcomed the GST as the progressive new taxation system, they were sceptical about formation and functioning of the GST Council, in which they had no representation.

The main stakeholder in the GST system, the trade and industry, which paid tax to the tune of more than ₹1.6 lakh crore per month, even before they collected the tax amount from buyers, had absolutely no opportunity to meet the GST decision makers to ventilate their grievances and get answers to their questions.

The Supreme Court judgment had opened public debate on various aspects of the GST, particularly its implementation by the GST Council. The GST, which was introduced as a single tax by subsuming 17 taxation enactments, was claimed to end “tax terrorism”, but actually it had become a “tax terrorism” due to the conundrum created in the implementation of the GST Act and Rules. “Inspector Raj”, had crept in, he said.

A large number of notifications, circulars, retrospective amendments and Q&As were being issued every day, making it difficult to understand even by tax experts and threatening the trade and industry with dire consequences even for small technical mistakes. The voice of Chambers of Commerce, including valid suggestions for simplification, was not heard by the implementing authorities, Mr. Rethinavelu added.


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Printable version | Jun 20, 2022 2:35:45 am | https://www.thehindu.com/news/cities/Madurai/sc-order-a-game-changer-in-gst-implementation/article65439014.ece