Merchants’ Chamber of Commerce & Industry organized a Session on “Untangling GST Litigation – A Roadblock to Business Growth” on Saturday, 17 February 2024 at Conference Hall of the Chamber.
The Session was addressed by Shri J K Mittal, FCA, FCS, LLB, GST Expert and Advocate, Supreme Court & Delhi High Court.
Shri J K Mittal, FCA, FCS, LLB, GST Expert and Advocate, Supreme Court & Delhi High Court in his addressed mentioned that when GST was introduced it was expected that GST laws would reduce litigations, plug the loopholes for evasion of taxes thereby enhancing the tax buoyancy and give a stable tax regime. However with the experience of more than 6 years, instead of reducing litigations, under GST, there is surge in litigations across the country.
Shri Mittal pointed out that poor drafting of law of Act, Rules & Notifications, poor administration and implementation, rampant abuse of power by officers and lack of Supervisions & Monitoring by Government and senior officers are the main causes of GST litigations. He also added that multiple ways enforcements like Audit, Return Scrutiny, Anti Evasion, Directorate General of GST Intelligent (DGGI), which are working against the same assessee, for the same period, for same very records, which is unheard in any law.
Shri Mittal suggested that Unbridle power of Audit under section 65 and power to access business premises under section 71 are needless. The officer’s access to premises is without any safeguard provided in the Act, whereas section 67(1) & (2) to access to premises, have many checks and safeguards. He deliberated that Power under section 70 to issue summons need curb. Summons are being issued in a routine manner to create fear in mind of taxpayers. Section 75(2) need to be omitted, which provide converting proceeding from section 74 to section 73 and Section 75(11) need to be omitted, which provide exclusion of period of pending proceedings in other cases.
While discussing on show cause notices and adjudication, he suggested that Time limit to issue adjudication – The proper officer shall issue the order under sub-section (9) within three years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within three years from the date of erroneous refund. This is too extensive and not justified. In earlier Service Tax period is six month to one year.
He also informed that GSTN portal must act as per provisions of law and not vice versa, like return revising there is no bar in Act, but GST portal does not permit so. Similarly, as per General Clauses Act, if last date of compliance happens to be on a public holiday, then succeeding working day is treated as last date of compliance, but this is also not followed by GSTN.
Shri Arun Kumar Agarwal, Chairman, Council on GST, Indirect & State Taxes, MCCI in his Welcome Address said that the tax reform measures witnessed record GST collections on a month-on-month basis, over the years. The monthly revenue collection of Rs. 1.6 lakh crore plus has become the new normal in this running 6th year. Although the taxpayers from the industry, trade and business are through with the teething problems faced at the initial stages, however, there are several burning issues still prevalent, which need to be addressed and a plethora of doubts, asking for clarifications.
He further added that GST tends to simplify the complex and tangled system of tax collection and distribution between the Central and the State Governments. The legal framework is based on a dual model, in which both the Central and the State Governments have authority to collect tax from their respective territories. The multi layered structure built for tax collection and distribution often leads to disparities between State and Central Government.
The Session was concluded with proposing a Hearty Vote of Thanks by Shri Vivek Jalan, Co Chairman, Council on GST, Indirect and State Taxes, MCCI.
(This story has not been edited by News Mania staff and is published from a Media Release)
