PROPOSED ADMINISTRATION OF GST (PART-I)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 24-11-2016
Considering the federal structure of India, there will be two components of GST – Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit would be permitted. On inter-state transactions including imports, integrated GST (IGST) shall be levied and collected in lieu of CGST and SGST.
Both the levels of Government have distinct responsi
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ring natural calamities/disasters, special provisions for certain States, etc.
Its residual entry specifies any other matter relating to GST, as the Council may decide. Also, in terms of clause (6) of the Article 279A, while discharging the functions conferred by article 249A, the Goods and Services Tax Council shall be guided by the need for a harmonised structure of goods and services tax and for the development of a harmonised national market for goods and services.
Though the role of GST Council shall be recommendatory, its recommendations will carry a weight due to participation of centre and all states. According to the proposed administrative model, GST Council and proposed Central Board of Indirect Taxes shall work closely at the helm for administration of GST in India.
Based on proposed model of organization under GST, following changes are expected –
* The administration structure post GST would be based on the principle of pooled sovereignty, mutual co-operation, cross
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trade as well. The traditional division structure of scrutiny should be replaced with audit and scrutiny. There shall be mutual exchange of intelligence and joint audit if agreed by the state.
* There shall be a working arrangement wherein if the issue has monetary implication of ₹ 5 Lakhs or the amount as fixed by the GST Council , and if the issue is non-recurrent for the assessee, then the decision of the Commissioner Appeals in such cases should be accepted even if it is not in favour of the department and with the no precedence value.
* This exercise will also result in re-distribution of manpower and further this re-distribution shall be done in most transparent manner keeping in view of the talent, potential and skill sets of the staff.
* With this exercise, the infrastructure and vehicle issue to be re-considered in a fresh perspective rather than a traditional "penny wise pound foolish attitude"
* The reason for making the Regional head as the cadre co
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or more members. The number of members would be flexible. In addition to Additional Secretary Revenue, as Member Secretary of GSTC, Member GST shall also be the Member Secretary to the GST Council for CGST and IGST related issues. Board through Member-GST may be the think tank to assist the Council in policy formulation in CGST and IGST matters.
The members may have different portfolios such as –
* Member, GST (Secretary, GST Council )
* Member, Customs
* Member, (IT, Policy & Infra)
* Member, Central Excise & Legacy Issues
* Member, P & V, Training
* Member, (P & J, Audit)
Member (GST) will also act as Secretary to GST Council. Principal Chief Commissioners / DGITI or Anti-Evasion Directorate / Principal Secretaries of States may report to Member (GST). Member GST interaction with Principal Secretaries of States would be purely for operational requirements such as reports, data collection, joint action, pre-consultation for GST Council meeting etc. It is expected that i
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