IRS Association Fears Rampant Evasion if low level GST is given to States
THE IRS (Customs and Central Excise) Association yesterday tweeted,
GST faces deadlock over administrative control on assessees Thanks @arunjaitley Sir. Strong centre is the way..
We profoundly thank Hon'ble FM @arunjaitley for his firm stand on the issue of strong centre & for protecting interests of the Service.
It is reported that in a letter to the Finance Minister, the Association says,
The move towards GST is aimed at simplifying the tax structure, widening the tax base, reducing tax-evasion and incentivising the honest tax payers. It is supposed to be a win-win situation for all the stakeholders viz the taxpayers, Central and state government.
The proposal for having divided control over the assessees with all assessees having revenue less than Rs 1.5 crore being monitored only by state government is in conflict with the very root and premise of having GST. It will lead to rampant tax evasion, confusion and chaos amongst assesses due to different interpretations of issues by different states from J&K to Kerala.
The Kerala Finance Minister wonders why two controls for one tax. The officers are likely to take a decision today and it is likely to be proposed that there is a vertical split with the Centre having one third control and the States two-thirds. Even this may not be agreeable to the States.
More the reason why the tax should be collected by the banks and not the revenue officers. Many of us will go unemployed, but if the chai-wali in Mawsynram can make sacrifices, so can we.