Dear Friends,
After passing the GST bill and issue of model GST law for discussion, various articles on its procedures, prospects, strong points, weak points etc are coming and suggestions for improvement are also forwarded.
In my opinion, simple law and procedure under GST will be better approach both for govt n industry and will ensure better compliance and benefit to consumers as under.
All goods & services should be divided into four classes- Taxable @ 0%, 10%, 20% and 30% or so as the tax rates may be fixed by the govt for a class of goods n service. Classification of goods n services in different tax rate list will obviate all exemption, rebate, refund notifications & circulars.
Every supply n service must be only through Tax Invoice, chronologically numbered n dated, be it registered dealer or customer. Registered dealer will be able to get ITC while customer will not. It will obviate all intermediate invoices, debit notes, transfer challans, job work challans etc. Registered dealers may be given lower tax rates and full ITC on all transactions for better compliance n efficient working.
Exempted goods n services must be placed in 0% tax category so that registered dealer accounts for all transactions in its returns whether taxable or not. It will make the provisions of disclosure, information, audit, verification etc redundant and obviate multiple records n returns.
Tax rate of CGST and SGST must be same for all goods & services, IGST must be aggregate of CGST and SGST. It will not only make the prices competitive but also facilitate distribution of revenue among states n union and make the tax returns more informative.
CAclubindia
