GST regime has been on its way towards the implication, and in this journey, the dream work of UPA government caught a seizure. Large Taxpayer Units are now in the black zone and will be closed down as soon as the new taxation regime comes into force.
TR Rustagi, former joint secretary of the ministry of finance said that “LTU was not a great success. It would die its natural death with the introduction of GST.” But still, there are some departmental heads who are in the same voice with Large Taxpayer Units as Sumit Dutt Majumder, former chairman of Central Board of Excise and Customs (CBEC) mentioned, “We must not abandon LTUs. Rather, we should extend the concept to STUs (Small Taxpayers Units) in the GST regime. And, as mentioned, it can have CGST and SGST authorities and income tax authorities as its constituents.”
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When the LTU was information, the finance minister in that time period, P Chidambaram noted that “As a measure of facilitation, I propose to follow international practice and establish LTUs. To begin with, these units will be set up in major cities. I would like to invite large taxpayers, whether of corporate tax or income tax or excise duties or service tax, to participate in the program and avail of the single window service.”
For the acknowledgment, LTU’s are functional for the purpose of helping the taxpayers to have interactive connections with the central tax department for the resolution of any dispute in the case of any transaction at the earliest. But the fate was something else in the case of LTU, and it turned out to be nonperforming which was also cleared by the IT group Nasscom who clearly stated that there are numerous operational difficulties in the system.
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So as to say, the Large Taxpayer Unit are not proper in the scenario of its result and needs to be dismantle. The American Chamber of Commerce in India finally revealed the true nature of LTU’s as it stated that, “The LTU scheme was announced to bring some relief for large taxpayers by providing them administrative convenience and other fiscal benefits, but this amendment will hamper the said intent.”
