++ Removal of avoidable cascading which compromises the competitiveness of Indian business viz. a viz. cheap imports;

++ Facilitating export-oriented economy by recognizing many foreign exchange earning activities as exports and allowing full neutralization of taxes on exports;

++ Cost reductions by optimizing inventory levels that cannot be done sometimes only because of tax laws;

++ Reducing the draconian fear of tax compliance by proper checks and balances and removing antiquated provisions;

GST is a tough reform and can become unpopular if the benefits are not appreciated by the common man soon after its launch. This is on account of the fact that the prices of services tend to rise and those of goods do not go down on expected lines.

It will be desirable to carry out a large part of the preparatory work in the existing legislations of central excise and service tax, and present to the States a fully functional and workable model that wins their confidence.

++ Digital signatures on any Excise, Service Tax, and Customs documents should be permitted (though provided generally under Information Technology Act).

++ Allow Cenvat Credit on digitally signed and electronically received copies of invoices, subject to safeguard measures;

++ Digital copies of relied upon documents can be made acceptable documents unless questioned otherwise.

Small sector plays a crucial role in employment generation and encourages entrepreneurship. It is often at the receiving end from tax administrators. They need to be treated with compassion so that they are more willing to join the tax stream. Our suggestions will help give their far greater level of confidence.

Nearly top 1000 taxpayers account for bulk (around 60%) of the revenue. They have the benefit of sophisticated technology in the running of operations and are impacted disproportionately because of any tax complexity. With the benefit of knowing precisely where the shoe pinches they can also be great facilitators in providing valuable inputs in the making of tax laws blunting much of the adverse criticism later.

There is a need for reducing hostility in tax environment by building a relationship of trust and mutual respect with them. Suggestions in this area will help to create this climate.

Mindless litigation of the last many years has resulted in the near clogging of the courts and tribunals entailing huge costs on both sides. Uncertain understanding of tax laws (service tax in particular); coupled with a coercive interest rate up to 30% pa makes the whole environment an advocates' paradise. Many novel suggestions have been made to overcome this herculean task.

Of the various tax-collection wings the officers of central indirect taxes remain the most feared lot. Part of this is contained in the exemplary penal provision like COFEPOSA, arrests, searches and summons that are more frequently deployed. Such powers were perhaps warranted in a regime where India was facing exchange crisis. With liberalization of the economy and reliance on automated systems and scientific audits, some balance is warranted to remove the fear of draconian actions in fairly routine situations.