GST has become colonial taxation system: CAIT

Jamshedpur, May 17: Much against the declared spirit of GST as Good & Simple Tax, the GST has become a “colonial taxation system” quite away from the ground realities of business conducted in India. More than 1100 amendments in 4 years of GST implementation in India by the GST Council in Act and Rules under GST has made the taxations system much complicated and put much compliance burden on the traders, which is also against the vision of Prime Minister Narendra Modi for bringing ease of doing business-said Suresh Sonthalia Secretary of the Confederation of All India Traders (CAIT).

The CAIT has called for a review of GST Act and Rules after having more than 4 years of experience both by the Governments and traders. There is an emergent need to simplify and rationalise the tax structure in India.

CAIT Secretary General Praveen Khandelwal and Secretary Suresh Sonthalia said that even after about 4 years of GST implementation in India, the GST portal is still struggling with many challenges. The rules are amended but the portal fails to update with said amendments timely. So far no National Appellate Tribunal has been constituted. No Central Advance Ruling Authority has been constituted giving a free hand to States to interpret the law in their own way distorting the fundamentals of “One Nation-One Tax”. The GST Authorities are more interested in GST compliances but never thought that large chunk of traders in the Country are yet to adopt computerisation in their existing business. Format and no step has been taken to equip the traders with computers etc.

CAIT national Vice President Brij Mohan Agarwal said that in a recent Rule, the GST Authorities have thrown all canons of natural justice by empowering the Authorities to cancel GST Registration of any trader without giving him any notice or an opportunity of hearing. Unfettered and arbitrary powers are given to officers without realising the misuse of such powers which may lead to corruption. The GST law has been greatly distorted by the Authorities which is evident from the fact that since the date of GST implementation till 31st December,2020, total 927 notifications have been issued, in 2017 298, in 2018 256, in 2019 239 and in 2020 137 notifications. In such a situation how can we expect from traders to comply with timely compliance of the taxation system.

Suresh Sonthalia said that they wish to resolve these issues by way of dialogue with the Finance Minister. We are more inclined to join hands with the Government in widening the tax base, increase in revenue but with simplification of tax regime.