CA Sudhir Halakhandi

CA Sudhir Halakhandi

The GST council has at last resolved the so called deadlock of “Dual Control problem” over the GST Dealers and now as per the promise of lawmakers “one dealer”  will be controlled by one authority and will not be put under dual control but the solution is very unique and not practical.

As per this formula Dealers up to Rs.150 Lakhs 90% will be assessed by States and 10% by centre.

Over Rs.150 Lakhs it will be 50:50 i.e. 50% Dealers will be assessed by States and 50% by Centre.

How it will be decided which dealer will go under central control and which will be controlled by States may be decided by some odd/even type farmula or by random computerised system or any other system since it is not declared yet but certainly it will create a very complex situation for dealers.

There may be some drawbacks of this formula but at least the deadlock on this problem is resolved to make a way for GST though it will create procedural hazards for dealers.

Further it will keep busy the 86000 Central Excise Employees and 265000 State Vat Employees(Combined all states).

In present Vat regime in most of the states almost all assessments are made on IT system without human intervention and GST will work on single GSTN system then how this Dual control problem has got so much importance and ultimately solved in very compromised manner.

When whole the system is based on IT system and through GSTN it is online based then why centre and states wants to control the Dealers on their own. Indian GST is not a standared Goods and Service tax and it is not a single Tax but it is a Compromised Dual tax in which on a single transaction both state and centre will collect tax . Now this 50:50 will make it more confusing , complex and compromised.

If lawkakers are inventing 50:50 type solutions then GST may remembered in theory only.

Why don’t they merged whole the centre and state Indirect tax Machinery in a “Federal GST Staff” to avoid implementation of this impractical Solution of “Dual Control” problem.

(CA SUDHIR HALAKHANDI, Laxmi Market, BEAWAR-305 901 (Raj), Rajasthan, Cell: – 98280 67256, Sudhirhalakhandi@gmail.com)

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2 responses to “GST 50:50:- Is it a Viable Solution!!!”

  1. S.D.KUBAVAT says:

    I ALSO AGREE IF THEY ARE SAYING THAT “ONE NATION ONE TEX” THEN WHY THIS PARTITION OF 50:50 OR 90:10 SHOULD BE MADE? THEY SHOULD COMBINE THE SYSTEM & THEN IF THEY WANT THEY CAN MAKE PARTITION OF TAX INTERNALLY!

  2. viji says:

    agreed, GST which was evolved as a simple tax mechanism is becoming more & more complex due to compromises & effort to bring all party consesus. This 50:50 formula is arbitrary & not professional & defeats the purpose of GST

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