Wait...
  1. Home >
  2. Export Import News >
  3. GST News >
  4. No centre-state wall: Officials handling GST can assess all >
  5. No centre-state wall: Officials handling GST can assess all

Online Export Import Data Search

Complete Training Video : Click Here

No centre-state wall: Officials handling GST can assess all.


Date: 17-10-2018
Subject: No centre-state wall: Officials handling GST can assess all
NEW DELHI: The government has clarified that both the state and central authorities handling the goods and services tax have enforcement powers over all assessees in a state, triggering fears that the industry may get caught in a crossfire between the two. 

The central tax and state tax authorities are allowed to initiate intelligence-based enforcement action on the entire taxpayer base, irrespective of the administrative assignment of the taxpayers to any authority, Central Board of Indirect Taxes and Customs member Mahendra Singh wrote to officials, citing the minutes of a meeting of the Goods and Services Tax Council. 

At present, for assessment purposes, there is a clear division between the Centre and state officials. States have exclusive control over businesses with a turnover of up to Rs 1.5 crore, while those with a greater revenue have been divided as per an agreed formula. 

“The authority which initiates such action is empowered to complete the entire process of investigation, issuance of show cause notices, adjudication, recovery, filing of appeal, etc., arising out of such action,” according to the letter. 

Singh’s letter comes after it was brought to the notice of the board that there was ambiguity over the initiation of enforcement action by central tax officers on taxpayers assigned to a state tax authority and the other way around. “Both the central and state tax authorities shall have power to take intelligence-based enforcement action in respect of the entire value chain,” Singh quoted from the minutes of the January 2017 GST Council meeting. 

The Centre had agreed to the division of administration to get states on board for this tax reform, but there have been murmurs about differences even though a formula was laid down. Some states witnessed detailed consultations as both authorities sought to administer a particular taxpayer. In other cases, while the central authorities were keen to keep the taxpayers it had in its fold earlier, the state authorities wanted to pick up some big ones. 

Industry, especially the service sector, has been wary about the division. Before GST was rolled out on July 1, 2017, the central authorities administered central excise levied on manufactured goods at the factory gate and service tax, while the state authorities focussed on retail. Companies now fear that they may get caught in the crossfire between the two authorities as both intensify enforcement action. 

Experts said it may be better to centralise GST implementation. “The expectations of ‘one nation, one tax’ are also accompanied by expectations of one assessment, one authority and one body to enforce the law,” said MS Mani, a partner at Deloitte India. “In the long run, it may be better to centralise all assessment, audit as well as enforcement proceedings for a particular business with one set of authorities (central or state),” said Siddharth Mehta, partner, Indirect Tax, PwC India. 

“A congruent approach could have been to involve the agency under which the assessee is registered and initiate actions through them, which would also bring administrative ease to the assessee,” said Suresh Nandlal Rohira, partner and leader, GST & Customs, Grant Thornton India LLP. 

Source: economictimes.indiatimes.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 28-10-2018
Notification No. 71/2018-Customs
Seeks to further amend notification No. 25/2002-Customs, dated the 1st March, 2002.

Date: 11-10-2018
Notification No. 74/2018–Customs
seeking to ammend First Schedule of Customs Tariff Act, 1975.

Date: 11-10-2018
Notification No. 75/2018 – Customs
seeking to ammend Notifcation No. 57/2017 dated 30th June, 2017

Date: 11-10-2018
Notification No. 76/2018 – Customs
seeking to ammend Notifcation No. 24/2005 dated 1st March, 2005

Date: 10-10-2018
Notification No. 22/2018-Central Excise
Seeks to amend notification No. 11/2017-Central Excise dated 30th June, 2017 in order to reduce Central Excise duty rates on Aviation Turbine Fuel.

Date: 09-10-2018
Notification No. 51/2018-Customs (ADD)
seeks to amend the notification No. 23/2103 dated the 10th October, 2013 to extend the levy of anti-dumping duty on the imports of " Ductile Iron Pipes " originating in or exported from China PR..

Date: 09-10-2018
Circular No. 37/2018-Customs
Cases where IGST refund have not been granted due to claiming higher rate of drawback or where higher rate and lower rate were identical

Date: 09-10-2018
Notification No. 53/2018 – Central Tax
Seeks to make amendments (Eleventh Amendment, 2018) to the CGST Rules, 2017. This notification restores rule 96(10) to the position that existed before the amendment carried out in the said rule by notification No. 39/2018- Central Tax dated 04.09.2018.

Date: 09-10-2018
Notification No. 54/2018 – Central Tax
Seeks to make amendments (Twelfth Amendment, 2018) to the CGST Rules, 2017. This notification amends rule 96(10) to allow exporters who have received capital goods under the EPCG scheme to claim refund of the IGST paid on exports and align rule 89(4B) to make it consistent with rule 96(10).

Date: 09-10-2018
Notification No. 53/2018 – Central Tax
Seeks to make amendments (Eleventh Amendment, 2018) to the CGST Rules, 2017. This notification restores rule 96(10) to the position that existed before the amendment carried out in the said rule by notification No. 39/2018- Central Tax dated 04.09.2018.



Exim Guru Copyright © 1999-2018 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001