As the GST Council is being chaired by the Finance Minister, who has hundreds of other commitments, it is not possible for her to concentrate fully on GST related issues. Ahilya Chamber, therefore, requests that a independent dedicated ministry with Cabinet Rank, headed by an Taxation Expert, be created for GST.
Ahilya Chamber of Commerce and Industry
The Prime Minister,
Government of India,
Sub: INDEPENDENT MINISTRY FOR GST & COMMERCIAL TAXES (INDIRECT TAX)
It has to be acknowledged that the biggest indirect tax reform namely GST has been implemented under your esteemed regime. However, due to the constitutional compulsions, it had to be implemented in great hurry resulting in enormous hardships to stakeholders.
The GST council has no doubt been very responsive to suggestions but this again has resulted in a plethora of Notifications and Circulars, only adding to the chaos. As the GST Council is being chaired by the Finance Minister, who has hundreds of other commitments, it is not possible for her to concentrate fully on GST related issues. Ahilya Chamber, therefore, requests that a independent dedicated ministry with Cabinet Rank, headed by an Taxation Expert, be created for GST. It may not be out of place to mention that Ahilya Chamber, Indore has been contributing to GST since 2009 and our various suggestions have found favour with the then Empowered Committee of Finance Ministers and now GST Council
We hereunder enumerate the reasons supporting our suggestion:
1) Indirect Tax affects 130 CR Population V/s Direct Tax 7 CR population :
Direct Taxes directly concern with only 7 Cr people in India. But Indirect taxes like GST have an impact on the entire population of the country. It, therefore, needs more focused attention.
2) Finance V/s Commercial (Specific GST and Indirect Tax) Ministry :
Finance ministry needs to look at all aspects related to Finance in country. Management at Macro level of taxes is done by Finance ministry. But they do not know the issues in GST implementation and flow of GST. At some places, GST feels handicapped due to availability of concern ministers and government officials. An independent ministry working with GST council will show major changes in positive direction.
3) GST in New Flavour and AVATAR needed
Due to initial glitches, we have put thousands of patches with regular amendments/circulars numbering more than 800 in last 2.5 years. This has ruined the soul of GST. When council tries to correct one step, it has negative impact on some other provisions. We need deep study by GST Ministry, GST Council, stakeholders and come with a new drafted GST LAW, which is full proof and in interest of all stakeholders.
4) Commercial Tax Ministry in states already in existence :
Most states are already having independent Commercial Ministry which is taking care of all types of indirect taxes of the state including GST. Same needs to be replicated at Centre.
5) Changes in GST Rate is an ongoing process :
Nothing is permanent. So is Rates in GST. RNR (Revenue neutral rate) calculation done by officials before implementation of GST was done considering different parameters. But in last few years, economy has changed. Tax payer Base has been widened. An independent ministry can do continuous study as per changing market dynamics and decide rates of different commodity as needed.
We trust our suggestion will merit your kind consideration and a independent ministry will be formed as requested.