JUNE 28, 2023

By Vijay Kumar

WHEN GST was launched in 2017, I asked a tax pundit, whether it would be a happy situation for all concerned. He said, "for the first five years, it would be worse than hell for all". "After that?", I eagerly asked. "Everyone will get used to it", was the laconic reply. If anybody feels today that GST is simple and good, it is because he has got used to it. As a nation, we have terrible inexplicable power to sustain any shock and get on with life.

GST was a bad idea to start with. The powers of the Central Government and the State governments to tax were clearly demarcated and mutually exclusive in the First List and Second List in the seventh schedule to the Constitution and there was no power to tax in the third schedule. So, what could be taxed by whom, were very clearly stipulated in the constitution, actually even before the present constitution came into existence - in the pre-independence era.

This principle took several twists and turns and finally we reached GST where excise, service tax and sales tax merged into a single tax, but this single tax can be levied both by the Centre and the States. We had to amend the constitution to bring in GST and GST was not included in any of the lists, but was made a separate entity and a new concept emerged that both the Centre and the States could levy the same tax. The GST Council was made out to be the new mystical creation that would herald a new cooperative federalism. But within six years the walls of the edifice are cracking, what with the Supreme Court holding an already well known fact that the GST Council had only recommendatory powers. The States were free to levy their GST. The GST Council like the Security Council has tremendous respect and stature but hardly any powers. Of course, notwithstanding its power to recommend!

Well, we have problems in GST. There are too many changes in law and tariff – too many and too frequent that we need a supercomputer to keep track. The GSTN is more famous for glitches than solutions and it is being left to Law and courts to sort out the avoidable technical glitches. Machines will fail as do humans, but when they fail, there should be a solution. And there is no appellate tribunal. As, when and if a tribunal is set up, it will start with a huge opening balance and will be another judicial institution adding to the large number of pending cases.

Who can forget the initial confusion when GST was introduced? Everyone was scrambling to understand the tax slabs and figure out what belonged where. It felt like a game of musical chairs, except the chairs were tax brackets, and nobody knew where to sit!

Next, we had the Tax Invoice Riddle, puzzled as we navigated through a labyrinth of confusing rules, trying to decipher the secrets of the perfect invoice. It was like solving a Rubik's Cube while blindfolded and balancing a plate of samosas on your head. And if you made a mistake on your invoice, the tax authorities would summon you faster than you can say "GST".

Picture yourself in a circus ring, surrounded by tax authorities, accountants, and bewildered businessmen. The ringmaster, armed with a giant GST rulebook, cracks the whip and announces, "Let the show begin!"

We had the Tax Slab Jugglers whom we watched in awe as they seamlessly juggled five percent, twelve percent, and eighteen percent tax rates, all while maintaining a straight face. It was a performance that left you questioning your own mathematical abilities.

Remember the endless debates on what's a necessity and what's a luxury? It was like watching a bunch of politicians trying to decide if pizza is a necessity or a luxury. Well, we all know the answer to that one, right? Pizza is always a necessity! Who can forget the Hawaii chappal and the making of a chapathi. Remember the Finance Minister saying, "Air conditioners and Hawaii chappals cannot be taxed at the same rate" and the Prime Minister adding, "Can we have milk and Mercedes at the same rates?" Once you understand the intricacies of chappals and milk on one side heckling air-conditioners and Mercedes cars on the other side, GST is easy.

And of course, we can't overlook the GST filing process. It was like participating in a marathon, except instead of running, you had to navigate through a maze of forms and documents. It felt like a never-ending race against time, with penalties lurking at every corner.

So, after six years of GST in India, we can say one thing for sure: it has definitely given us some unforgettable moments. From confusing tax slabs to mysterious invoices, it's been a wild ride.

We had the Acrobatic Accountants. Marvel as they contorted their bodies into unimaginable positions to fit every transaction into the right tax category. They can twist, turn, and bend the numbers like nobody's business. It's like watching a yoga class gone wrong, but with tax implications. In the centre stage, behold the Tax Return Circus, where acrobatic accountants twist and turn their way through a mind-boggling array of forms and calculations. It was like witnessing a contortionist act, as they manoeuvre through complex rules and regulations, hoping not to tie themselves up in knots. The audience held their breath, wondering if they'll ever reach the grand finale.

And we couldn't miss the Daredevil Business Owners, attempting death-defying stunts as they navigated the treacherous terrain of GST compliance. They walked the tightrope of tax filings, risking audits and penalties with every step. It was a heart-stopping performance that had you on the edge of your seat, praying for their survival.

In the centre ring, we had the Magical Input Tax Credit Magicians. Enchanted we were as they made tax burdens disappear with a wave of their wand (or rather, a few clicks on their computers). It was like witnessing a tax Houdini, performing feats that left you wondering, "Where did my taxes go?"

And let's not forget the Clowns of GST, bringing laughter to the circus with their amusing antics. They tripped over convoluted rules, stumbled through confusing forms, and unintentionally created a spectacle of comedic errors. Their bumbling acts provided much-needed comic relief in this tax circus.

Did you watch the Tax Auditor's Tug of War, where businesses and auditors engaged in an epic battle of wits and paperwork? It was a game of cat and mouse, with auditors trying to uncover hidden transactions and businesses attempting to stay one step ahead. Who emerged victorious? Place your bets now!

In the heart of the tax wonderland, we found the Penalty Pitfall. Beware, for one wrong move could land you in this treacherous pit, where penalties lurk like hungry beasts waiting to pounce. It's a nerve-wracking experience, like walking on a tightrope made of tax regulations. One misstep, and you'll be diving headfirst into a world of fines, penalties and even arrest with an elusive bail.

And we had the Taxpayer Support Circus Tent, where harried taxpayers gathered, seeking guidance and solace. Inside, we found a motley crew of tax experts, accountants, and confused individuals trying to make sense of it all. It was like a support group for the tax-weary, where laughter and camaraderie replaced tears of frustration.

Meanwhile, in the Tax Consultation Comedy Club, tax professionals and confused business owners engaged in a battle of wit and misunderstanding. It was a scene straight out of a comedy sketch, with tax experts trying to explain complex concepts using jargon-filled monologues, and business owners nodding along, pretending to understand. It was a laughter-filled exchange of confusion and misinterpretation.

Anyway, there are minor irritants that you will have to get used to. The government is full of wise people who know what you should do and if you simply do what they ask you to do, even if it is impossible, one day or other you will get used to it. In 1944, they tried to simplify the Central Excise Laws, and continued till 2017. Can't you wait for another fifty years before GST settles down? Six years is too short a period to judge a tax. Anyway, the tax is imposed - not for your pleasure; You don't pay taxes--they take taxes. While at it, be happy and get used to it - you will eventually learn to live with it.

During the last six years, I have heard that:

-  GST is like a game of musical chairs, except instead of music, there's just the sound of businesses crying.

-  GST: Government Sanctioned Torture

-  GST: The gift that keeps on taking.

-  GST: Your one-stop shop for stress and bureaucracy.

-  GST: The only thing that unites all Indians; in confusion.

-  GST: The government's way of reminding you that it's their business what you do with your money.

-  GST: Making accountants and tax consultants great again!

So, as we witness the grand show of GST, let's applaud the performers, laugh at the absurdity, and hope that someday, this circus will transform into a well-orchestrated symphony of taxation. Until then, buckle up and enjoy the ride, because GST - the Great Show of Taxation - is here to stay!

Until Next week