Tax Officials to ‘Go Slow’ on Enforcement Under GST

Published on 21 Jul 2017 by Team

Indirect tax authorities will go slow on enforcement actions under the goods and services tax for the first six months, to give time for the new tax regime to settle down, Central Board of Excise and Customs chairperson Vanaja Sarna has said. “CBEC has enforcement authorities and I have specifically said that the first three to six months are a go-slow,” Sarna said at a CII event on Wednesday.

“I don't want small cases to be made,” she said, adding that there would be genuine errors due to lack of understanding of the new tax regime in the initial days. “I'm definitely not looking at any hard line attitude to start with,” Sarna said. “We would like it to be a complete success and we have enough legacy work in enforcement to be busy and we are not plunging into this now,” she said. GST rolled out on July 1. Sarna said CBEC has to encourage businesses to come into the GST fold. “With the kind of input tax credit (ITC) being offered, assessee base will widen,” she said. GST has subsumed 17 indirect taxes and 23 cesses, rolling out a far simpler regime, but the compliance systems are more advanced and online.

Officials have been answering queries on a daily basis to remove any misgivings on account of tax as also explain the procedures. The Twitter account set up to answer queries by industry has been getting 13,000 queries per day. Sarna said CBEC will come out with second round of FAQs to clarify issues related to GST, while admitting that there have been some glitches.

CBEC had constituted 18 sectoral groups to look into various issues faced by different sections of industry.

Of these, three groups have

more businesses to come into GST fold

GST rates will not be revised unless there is an anomaly or rates are unjustified, said CBEC chief

round of FAQs to clarify GST issues

submitted their report. The law committee is examining the reports, Sarna said. “We are not looking to dismantling these working groups and they would assist the industry in the problems they face in the GST regime,” she said.


Sarna said GST rates will not be revised unless there is an anomaly, or the rates are unjustified.

The comments follow textile traders’ demand for abolishing 5% GST on textiles. Surat textiles traders called off their two- week-long strike following the Centre's assurance to look into their demand of rollback.

“It is an issue that has snowballed, but it is not something which cannot be settled,” Sarna said. “The issue is that textile sector is taxed for the first time. So, anybody who comes into the net would feel the pinch,” she said. Sarna said CBEC has received representations from textile traders and is looking into any issue they may be facing.

She said industry still has time to present its wish list.

Source: The Economic Times

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