GST Bill half-passed but FM needs to guard against serious fault lines!

The Author's apprehension and advocate Sri B N Gururaj's comments are the clear indicators that as on date we have not prepared the ground properly for implementation of GST. But if proper steps are taken on war-footing, I am of the firm belief that GST regime could be started successfully by April 2016. As a first step the draft laws, if already prepared, have to be tabled and circulated for comments from all concerned. GST is a major change effecting every citizen and all the commercial activities of our Nation, and in a democratic set-up like ours, it is desired that everyone is made aware of the details of the new tax regime that is to be unleashed. The technological frame work prepared to comply with the proposed legal framework should be disclosed in advance so that the organisations / persons concerned will get sufficient time to fine tune their existing infrastructure for successful transition and compliance to new tax regime. Further the officers designated for the implementation must posess a fair knowledge of law as well as competancy in use of IT tools for analysis of the data. This type of techno-legal tasks can be carried out effectively only by specialised teams.
Therefore officers having knowledge in computers and law and having keen learning abilities, irrespective of cadre and rank, should be identified and trained in advance. The present approach by the departments, to train every officer for every task, is a total failure as the last 20 years spent on implementing ACES and CAAP utilities indicate. Therefore it is wise to identify such capable officers and train them for specific tasks. By doing so we can get , using minimum resources maximum and fruitful results. The failed ACES presently in place must be replaced as the scenario and the purpose of handling huge data in GST regime is totally different. Otherwise the officers are made to put up with bad tools once again, which is avoidable.

I also take this opportunity to recall the talks by Sri Gururaj B N in GST workshops conducted at NACEN on 'industrial perspective of a very good GST' ,but it is sad that we have not yet reached that stage even after 10 years of deliberations. It is time for everyone to gear up and bring this reform on priority without any glitches. In this regard author's apprehension about the defeat of the purpose in implementation of GST due to introduction of 1% non-vatable additional tax on interstate sales is understandable. instead the suggestion to hike SGST for a limited period by enacting suitable law is the right way forward as the philosophy of GST remains intact.
Let us work in the positive frame of mind so that our country gets the best and transparent tax system.

M G Kodandaram
Superintendent
NACEN Bengaluru.

madihally kodandaram 09/05/2015