April 20, 2024
Business

Goods and Services Tax– Would there be dual control?

My thoughts

In light of the above position, a trader who is currently dealing with the State VAT department would now be required to also deal with the officials of the Central Government as well. In my interaction, in unequivocal terms, I have noticed that the very thought of dealing with two departments scares most traders. If such be the scenario, will the promise of “simplification”, as one of the propagated attributes of GST, ever fructify?Will this help India Inc’s cause in moving up the ranks in the scale of ‘Ease of Doing Business’?  These are issues that the GST Council would need to address seriously.

As a possible solution, I would believe that the GST council should consider adopting threshold limits for the purpose of determining duality of control.For instance, traders’ upto a turnover of INR 5 crores would only be subject to assessment by the state GST Department and in other cases, by both.  Further, persons not making inter-state purchases can be handled solely by the state GST Department.  This would help in the ease of doing business.

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