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Spectre of multi-authority, repetitive and multi-directional proceedings haunting GST-payers

As the GST regime nears its seventh year, it faces challenges beyond tax collection growth. Despite its groundbreaking shared authority between the Center and States, overlapping inquiries and audits threaten its intended purpose of reducing tax.

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News Affair 24

By Admin

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10 months ago

As the Goods and Services Tax (GST) regime approaches its seventh year since implementation in 2017, it reflects on its journey akin to childhood development. However, measuring its success solely through growth statistics in tax collections may not provide a comprehensive picture, echoing Albert Einstein's quote: "Not everything that can be counted counts, and not everything that counts can be counted."
One of the pivotal aspects that rendered GST as a landmark tax reform was the shared authority between the Center and the States to levy taxes and administer their collection. Despite its revolutionary nature, this intricate legal framework now grapples with certain challenges. Taxpayers encounter overlapping inquiries, investigations, and audits by multiple GST authorities for the same tax period, presenting a hurdle to the fundamental purpose of reducing tax litigations envisaged by GST.

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