SubscriberWrites: Ease of doing business, a major hurdle in GST procedure

The GST council must incorporate suitable provisions under the GST law to empower taxpayers to immediately remove disruptions in smooth flow of goods due to discretionary powers of authorities.

Illustration: Soham Sen | ThePrint
Illustration: Soham Sen | ThePrint

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GST has brought about great level of simplicity in compliances under indirect taxes most importantly menace caused by system of C Forms for interstate sales prevalent in pre GST period. One major hurdle in procedural part that remains is power of authorities to detain goods at State Borders if they find any irregularities in accompanying documents related to GST. 

It is well known that discretion to authorities breeds corruption and this power of detention causes much harm to business environment where smooth flow of merchandise is under constant threat of disruption.

Consignment of goods accompanied by invoice and an e-way bill, are routinely intercepted and for some technical irregularities in the documents of which many are of inadvertent nature and sometimes goods are detained by the department. Getting goods released involves lengthy procedures and considerable lapse of time. Corruption gets a boost due to desperation of tax payers to avoid costs of these ordeals and loss of business opportunities. 

Such draconian powers of authorities must be eliminated. In this particular case an easy solution can be provided to taxpayers under which they will get right to get goods released immediately on furnishing bank guarantee for twice the amount of GST alleged to evaded. Exchequer’s revenue interests also will be protected if such easy option is given to taxpayers. Bank Guarantee shall be encashed if authorities finally succeed in assessment and appeal proceedings. 

GST council must address this difficulty and incorporate suitable provisions under the GST law that will empower taxpayers to immediately remove disruptions in smooth flow of goods due to discretionary powers of authorities. 

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