The upcoming 29th GST council meeting is going to take place on 4 August and the ongoing discussion is to put the proposals related to old tax matters in the meeting. Some suggest that the Council can discuss value-added tax and central excise tax and try to solve previous cases in this regard. It will also remove the problems being faced by the Goods and Services Tax.
If it gets approval then tax officers can focus on GST compliance instead of giving time to resolve such old matters. The government can also get outright big revenue. According to the proposal, the scheme will consist of assessment with arrears.
The industry experts have informed that every dealer in each state has to pay 2-3 VAT assessments. This is why the companies are busy in completing old VAT assessments along with GST law and compliance. Many tax officers of previous tax regime are now shifted to GST laws and there are only a few remaining to deal with old tax system processes. This is making the old tax-related matters stuck somewhere.
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KPMG partner, Indirect tax, Harpreet Singh mentioned that big companies of the sectors like consumer electronics and FMCG also have at least 2-3 assessment remaining in each state. Collectively, if the company operates in 20 states, then it has more than 40 VAT assessments are pending.
The government wants to reduce the tax-related discord and legal matters. Now, the government increased the financial limitations to register appeal for Central Board of Indirect Taxes and Customs, and Central Board of Direct Taxes. CBIC will now take back 21% cases from the Supreme Court, 22% from High Courts and 18% from tribunals. CBIC has directed officers to resolve old cases early and pay attention to the GST system. The government can relieve penalty and discount interest rates to resolve old tax related matters as soon as possible.
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