The Tamil Nadu government has constituted an advisory council to develop a federal fiscal model. The six-member council will be headed by Arvind P. Datar, a senior advocate at the Supreme Court, and will comprise experts on legislation involving revenue and taxation (including the GST).
A Government Order constituting the council that was announced in the State Budget 2022 and its terms of reference were issued on Saturday.
The other members are K. Vaitheeswaran and G. Natarajan, advocates at the Madras High Court; Suresh Raman, vice-president and region head, TCS-service sector; Srivats Ram, managing director, Wheels India Ltd.; and K. Velmurugan, president, Hosur Small and Tiny Industries.
The council will study the fiscal powers of the State and the Union government with special reference to the GST and the levy of cesses and surcharges by the Union government and its impact on the State’s finances, analyse the fiscal scenario of the State, identify the problems with the institutional mechanisms that support the GST, including the independence of decision-makers and the constitution of a GST tribunal.
It will also identify the compliance issues faced by large industries, micro, small and medium enterprises, the service sector and consumers so as to bring them to the notice of the GST Council. The council will identify difficulties with respect to the GST rates for various commodities, suggest strategies to improve the collection of the GST and other taxes of the State and study the best practices adopted in other States with regard to the GST, including the use of technology and artificial intelligence to identify tax evasion.
An officer of the Central Board of Indirect Taxes and Customs will be appointed on deputation as Member-Secretary, the order said.