Page 36 - GSTL_18th June 2020_Vol 37_Part 3

J70 GST LAW TIMES [ Vol. 37
States. If so the evasion would be a multiple of it. In GST thanks
to use of IT, keeping distance between the tax officer and taxpay-
er this has reduced. However in cases of surveys, E-way Bill in-
terception and refunds this practice is continuing. Reforms and
proper capturing of the process by way of camera, etc. would
limit this practice.
(XIII) Law to plug the practice of having 100s of registration based on
PAN No. availing the threshold limit of ` 40 lakhs and similarly
with the lower composition rate of 1%.
(XIV) Remove the exemption for education, defence supplies, Govern-
ment supplies, health care and education by having a 5% rate
with ITC. If the same is provided without ITC then again evasion
is encouraged.
(XV) Real estate remove the 1%, 5% without ITC make it 8% and 12%
with ITC - get 90+% to comply. Do not provide an incentive to
procure without paying taxes.
(XVI) Tax audit/GST audit statutory audit - all appointments by the
taxpayer. Built in system for appointing the professionals who
would support/be biased in favour of the taxpayer. Independent
IT based allotment by an independent regulator based on exper-
tise and Turnover could be thought of.
The certifying professional as well as the revenue auditors may find the first part
useful in conducting their verification exercise. Today data analytics using artificial
intelligence could also aid in identifying strange patterns especially in ITC. These
exception lists could be examined in detail.
The taxpayer has always ahead of the tax collector in India. His resources
were more and he owns the issue and the problem. However, with the GSTN
and Govt. adopting IT in a big way, this has truned and this can be used to the
advantage. It is my view that if the GOI can take positive action in even 10 of the
above the tax collection post-implementation would be 30% more in GST even
though some would still be out of the system.
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GST LAW TIMES  18th June 2020  36