As you read
this, 2017 will start to slide into memory. The common, indelible and
unquestionable memory of 2017 for professionals, businesses and tax
administrators will be GST. As we say, so long 2017, this editorial is
dedicated to that landmark transition: to say Bravo to every tax professional
and government and Bravi1 to
the millions of tax payers.
Bravo – Governments and Professionals
The governments,
at states and centre, deserve our deep regard for concluding the economic and
tax integration of India after 70 years. Future generations will look back in
disbelief at the type and manner of fragmented taxation systems that thrived
for so long. Let me walk you through it: 1944 (Central Excise) to 1956 (Central
Sales Tax) to 1965 (Octroi) to 1986 (MODVAT Credit) to 1994 (Service Tax) to
2002 (Service Tax Credit) to 2005 (VAT) to 2017 (GST). If there was one synonym
of GOOD in the definition of G(Good)ST, this is it. Bravo!
A supply
of booming round of applause to professionals – for having braved the onslaught
of compliance overdose and GSTN goof ups in first 5 months. If there was one
noun before which the adjective SIMPLE can be placed, it would be –
unbelievable – as in simply unbelievable. Bravo!
Bravi – Taxpayers
Bravi – millions of tax payers! For going through
the scary roller coaster rides by whatever name called: ‘teething troubles’,
‘invoice uploading’, ‘lame excuses’ and more, due to a
substandard compliance protocol. Those traders, manufacturers and the so called
‘informal’ sector2 will prove
that in spite of being subjected to such tax compliance catastrophe, they will
come out and shine bright! While there is noise on return of ‘GDP growth’, the
‘informal’ is what really gives work, dignity and livelihood to the millions
even if they don’t seem to give as much taxes. Bravi!
GST – A five month old baby
The GOOD of GST
is irrefutable, desirable and long overdue! The SIMPLE of GST is unverifiable,
contestable and hazy. GST is another example of an opportunity undermined. GST
could have transformed law making into the greatest enabler of doing business
at every level and create a solid revenue base for our nation. This was shot
down by legislative negligence in bringing out a substandard product and
executive misadventure of unleashing it before testing the GSTN. We can now
hope that both these do not lead us to judicial trauma of litigation3 and target driven revenue collection.
However, let’s not lose hope, for GST is still a baby!
Taking that
analogy, GST is a premature child, born to its ‘biological’ parents
Excise/Service tax and VAT, both having below average antecedents. Its genetic
makeup does mirror its family lineage. Some serious surgeries4 have
already been administered by super specialists5 on this baby. We hope that these surgeries in
the early stages will allow the baby to grow up into a well formed, pleasing
and healthy toddler. Tax compliance professionals had to play the role of baby
sitters and nannies to keep the baby safe and healthy, succumb to its tantrums
and cleaning the mess it made.
However, this
baby is a darling of everyone! We have made suggestions and recommendations for
its sound upbringing. We hope that by its first birthday, when it will start
walking and talking, it will be more cheerful, out of the ICU and will be as
playful as a young one can be! If I can speak for most, we all look forward to
a refined version of GST with excitement and anticipation!
So long 2017
As the year
comes to a close, let me mention that this is the best time ever in the history
of human race. There has never been a time like the one we are living in! I
wish you the best ever 2018! Whatever be your new year resolutions – be it diet
and exercise, to reading books, to taking more time off work, to giving back to
the society, to learning a new skill, … to becoming the person you ever wanted
to be – I wish they all come true!
Raman
Jokhakar
Editor
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1 Plural of Bravo, often used at the end of musical performances.
2 Informal sector is said to provide 80-90% of all jobs and therefore dignity and economic freedom, while the 10-20% of large tax payers gives 80% of tax revenue but fewer jobs and fast switching to automation, robotics and AI.
3 Government is the largest litigant in the country.
4 Numerous notifications and circulars issued to amend the new law
5 The GST Council
