Setback to GST? States want e-permit to be flashed at borders

By | February 24, 2017
(Last Updated On: February 24, 2017)

Goods and Services Tax (GST), the all-consuming tax reform which was promised to bring in seamless movement of goods across states may have developed a chink in its armour.

The Centre, on the insistence of states, has brought in the need for an e-permit to be flashed at state borders.

The move may threaten to continue to legacy of one of the biggest roadblocks hampering interstate trade: permits required to bring in goods.

Though an electronic permit will be an improvement from traditional paper permits, those transporting goods across states will have to queue up at checkposts near the borders for the epermit to be checked.

State tax authorities pushed for its inclusion arguing that there is an evident requirement to keep tabs on the amount of goods transported across state borders.

The Centre tried its best at resisting the move and counter-arguing that its indirect tax administration be moved away from inspector raj era. However, it had to give up in order to arrive at a consensus so that the bill gets rolled forward.

The apex body for GST, the GST Council, consisting of state finance ministers and the Union Finance Minister as its chairman is slated to take up the GST Law when it will meet next in March.

Some experts believe that e-permit takes away a lot of the benefits the GST possesses — as it may fail to keep a check on corruption that exists in the way of inter-state trade.

The GST is slated to be applicable from July 2, 2017. Source – http://www.moneycontrol.com [23-02-2017]

Category: GST

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com

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