JUNE 26, 2019

By Vijay Kumar

- THE implementation of GST has led to the removal of cascading effect of taxes in the economy as well as promoting free movement of goods across States, thereby creating "one nation, one market".

- A simplified tax regime has resulted in reduced compliance burden for taxpayers and promoting ease of doing business in the country.

No, I am not jesting GST; this is what the Finance Minister told the Lok Sabha on 24th June 2019, answering a question - whether the implementation of Goods and Services Tax (GST) has been successful and if so, the details thereof.

The new Finance Minister also told the Parliament that:

a. Based on the feedback received from taxpayers, Goods and Service Tax Network (GSTN) regularly updates the User Interface for filing of returns so as to improve user experience.

b. An IT-Grievance Redressal Committee has been put in place to address the difficulties faced by taxpayers owing to technical glitches on the GST portal. It has the mandate to approve and recommend to the GSTN the steps to be taken to redress the grievance and provide relief to taxpayers.

c. Awareness campaigns such as seminars, workshops, open houses, use of social media, advertisements in print and electronic media etc. were carried out across the country to educate the taxpayers about return filing and other legal provisions under GST. Help Centres have also been established to provide assistance to taxpayers in return filing and related issues.

Everything seems to be well with GST - Government at the top is sincere and serious; babus are permanently engaged in making life easy for the taxpayers; only the taxpayers and their consultants do not know the law and procedure, especially on paying taxes and filing returns. Now don't complain, pay your taxes and file those returns and then maybe you can go to the courts.

FASTag GST

A question was asked,

"Will the Minister of FINANCE be pleased to state: Whether the Government proposes to integrate a FasTag bank mechanism with e-way bill and Logistic Data Services to track movement of goods and check GST evasion."

And the Hon'ble Finance Minister replied on 24th June,

Yes, the Government is contemplating integration of E-Way Bill mechanism of GST with FASTag system of National Highway Authority of India (NHAI). The aspect of Logistic Databank integration with FASTag System is being examined.

She also stated;

A Committee of Officers comprising of officers from Central Government, State Governments, GSTN (Goods and Services Tax Network), NIC (National Informatics Centre), GST Council, to examine the issue of use of RFID data for strengthening of E-Way Bill mechanism under GST, was formed by GST Council. The representatives of NHAI and NPCI (National Payments Corporation of India) were also co-opted in the committee. The Committee of Officers has submitted its report to the GST Council, recommending integration of FASTag system with E-Way Bill mechanism. The recommendations of the Committee are under consideration by GST Council.

Further, with regard to integration of FASTag with LDB, a committee comprising of Central Board of Indirect Taxes and Customs (CBIC), NHAI & its associates, NPCI, GSTN, NIC, Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) & its associates was formed to examine the feasibility of the same. The committee has submitted its report, which is being examined.

But what is FASTag, RFID and LDB?

FASTag: NHAI has rolled out a program for Electronic Toll Collection on Toll Plazas on National Highways to be called FASTag. FASTag is a simple to use, reloadable tag which enables automatic deduction of toll charges and lets a vehicle pass through the toll plaza without stopping for cash transaction. FASTag is linked to a prepaid account from which the applicable toll amount is deducted.

RFID: FASTag employs Radio Frequency Identification (RFID) technology for making toll payments directly from the prepaid account linked to it. It is affixed on the windscreen of the vehicle.

LDB: Logistics Data Bank service is to bring efficiency in the Logistics & Supply Chain environment through use of information technology that would be helpful for tracking and viewing the movement of containers. This LDB Project provides visibility and transparency in EXIM containers movement and helps in reducing overall lead time of the container movement and lower the transaction cost incurred by the shippers and consignees as a result of predictability and optimization achieved through Logistics Data Bank.

Happy days ahead for GST.

Commendation Certificate - GST DAY: GST Day is to be celebrated by CBIC on 1st July. In this connection, CBIC has announced grant of Commendation Certificates to 29 officers from all over India from the rank of Joint Commissioner to Tax Assistant. The Chief Controller of Accounts is also an awardee.

The Certificates are given to selected officers who, by their innovative ideas/continued devotion and commitment to duty, have contributed in promoting excellence in the fields of GST administration. The objective is to give due recognition to officers who may have contributed significantly in diverse areas such as trade facilitation, automation, enforcement, audit, infrastructure development, human resource development, personal management, secretarial work, legislation, policy making, legal, judicial, and training, which often remain unrecognized by way of formal awards. The Commendation Certificates are to be distributed by way of formal awards proposed to be distributed on the GST Day function being organized in New Delhi on 1st July 2019.

It has been clarified that officers receiving the CC (Commendation Certificate) need not be in uniform. Maybe there is no uniform in GST. Please also see GST Jest in Uniform.

National Anti-Profiteering Authority gets an extension. The GST Council has granted an extension of two years to the National Anti-Profiteering Authority, yet another litigation generating factory, which should have been allowed to be extinct. The Government should seriously try to reduce the number of Authorities responsible for making GST simple and good. All concerned will be happy with as less government as possible. The Authority for Advance Ruling and its appellate authority richly deserve to be consigned to the annals of history. What is urgently required is the creation of GST Appellate Tribunal, failing which our High Courts will have to struggle with understanding the law, logic and wisdom pronounced in large number of orders passed by Additional Commissioners. GST will crush the High Courts if those tribunals don't start functioning immediately.

Until next week