For Debate and If All the Experts Agrees, May Be Helpful to Change The Present CST Act to Maximize Tax Collection.

Maharashtra Sale tax dept’s VISION STATEMENT says that: –

“We aim to be an efficient and effective tax administration respected for fairness, transparency and professionalism.” If a registered dealer/company is not issuing form C, even though the same is mentioned in their purchase order, the invoices are raised accordingly,  Sale tax dept collects additional tax, penalty from the Seller & the Buyer  is not penalized?   No questions are asked to the Buyer for non issuing of Form C, against applicable purchases!  Sale tax dept allows Buyer to continue the business, and indirectly helping him to evade the tax?

Mission statement of Sale tax dept says: –

To administer the Value Added Tax Act and allied statutes and the Profession Tax Act in an impartial, uniform and efficient manner so as to maximize tax collection through universal coverage of all eligible tax payers.

If Buyer is not issuing form C, and sale tax dept is not taking any action, means sale tax dept allows further sale / consumption of material without collecting the tax, indirectly helping Buyer to sale without bill which is net revenue loss for sate.

What is the aim – to collect the sale tax and no one should evade the same. By mere presentation of C form, it proves that there is no evasion of tax or the same is exempted under 6(2), but if one can’t then the same is not exempted?

When we say that we have established IT network, we have entire information, statistic available, why not the same has been used?  When sale tax dept has records of seller as well as buyer, why Sale tax dept doesn’t take efforts to cross check to maximize the tax collection?

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September 2021