Page 35 - GSTL_18th June 2020_Vol 37_Part 3

2020 ] ANALYSIS OF GST FRAUDS & THEIR MITIGATION J69
(V) Presently no quid pro quo of tax paid to the benefit enjoyed as
most of the taxpayers monies used for paying interest, funding
inefficient PSUs like Air India, BSNL, Loan Waiver, Free Goodies
near to election time, misuse of monies on a large scale by munic-
ipal bodies, etc.
(a) This is being sought by having direct transfers, more account-
ability which WOULD NOT WORK as the method of bring-
ing accountability is being suggested by the very person who
are indulging in corruption. Citizens charter in Central Excise
was a joke which was seldom questioned as most of the levels
had high levels of corruption. Now we have a citizens charter
being attempted which is not under the GST Act/Rules!!!
How it can be enforced. Will it remain an empty inactive
promise?
(VI) Distribution of powers in Government - Central and State with-
out any accountability. In GST will the big brother - Centre en-
sure compensation in time - till now not done and the younger
brother not put spokes in the system by way of special conces-
sions/exemptions etc. Erring officers to be punished in law and
internally.
(VII) High tax rates : This provides a huge incentive to evade. Example
are Gutka/Pan masala have 188%/88% as rate!! Who will not
evade? Those who do not would not be able to compete. Evasion
in such sectors could be 90%.
(VIII) Ineffective tax administration : Even after 32 months - officers
who sit on advance ruling, appeals and adjudication DO NOT
KNOW GST and have not passed an exam to evaluate. Obviously
they will pass bad orders which would be reversed in High Court
- total distrust building exercise as on date. State GST officers try-
ing to continue their nefarious practices. A few good officers are
available in all States and Centre. If the fence eats the crop how
revenue leakage can be contained?
(IX) Complicated laws and rules : In GST 6000 + notification, 500 +
circulars have made the law not understandable by the majority
of consultants!!! Let alone the taxpayer. Urgent reforms to simpli-
fy needed. The CBIC SHOULD NOT BE ALLOWED TO
FURTHER DRAFT THE GST LAW.
(X) Law made for the evader : This hurts the tax compliant and the
law evader gets away by using the old ways of taking care of the
officer when caught.
(XI) Very long dispute resolution : Almost all SCN in favour of tax-
payer reach Supreme Court due to the appeal being filed for each
and everything. Since taxpayer cannot get relief within the sys-
tem - he earn a part of the income outside the system.
(XII) Bribery : This was the bane of the earlier IDT with VAT being the
fore runner. At least ` 1 lakhs crores was the estimated bribe in all
GST LAW TIMES  18th June 2020  35