MillenniumPost
Bengal

Experts voice concern over lack of preparedness of India for GST

Justice Dr Satish Chandra, the president of Custom, Excise and Service Tax Appellate Tribunal (CESTAT) on Tuesday pointed out that since GST would be totally Internet-based and system driven, all the communications to the assessees would be made through emails. In India, where only 6 percent of the population pay Income tax, 16 percent conversant with Internet and 25 percent of villages not being electrified, the implementation of GST would be a huge challenge, Justice Chandra further indicated, while addressing an interactive session on 'A Journey of Indirect Tax Towards GST' organised by Merchants' Chamber of Commerce and Industry.

He said that the transitional phase would be very difficult for small businessmen. Initially, they would have to hire professionals for meeting GST requirements, which would result in increase in overhead costs. Justice Chandra also mentioned that in certain cases, particularly for food and medicine having expiry dates — input tax credit might not be available there.

Referring to CESTAT, he said that efforts had been on to reduce pendency of cases and resolve all the cases before the onset of GST. He also noted that pendency had come down to 88,000 from 1,04,000 in June 2016. Disposal had been more than 100 cases per day, he added.

CESTAT had been making all attempts to clear the cases, despite shortage of funds and manpower resources.

Meanwhile, president, Merchants' Chamber of Commerce and Industry, Hemant Bangur expressed concerned over pendency of cases and requested the tribunal to dispose off all the cases before introduction of GST.
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