GST 2.0: Changes needed to reform dispute mechanism and tackle profiteering

Experts point out that the Authority for Advance Ruling is state-specific, which at times results in conflicting rulings issued in different states

GST2.0 has entered the lexicon of the 2019 election manifesto. But, any effort to improve the indirect tax regime has to deal with two key pain points faced by businesses — the dispute settlement mechanism and the anti-profiteering measures. A mix of legislative changes and structural reforms are what experts prescribe to deal with these two issues.

Consider this: Determination of the place of supply of goods and services is one of the most contentious issues under the GST law. However, it does not take precedence in the advance ruling dispute settlement mechanism.  

A recent report by Vidhi Centre for Legal Policy