There is a misunderstanding going around that reduced tax collection is because of the defective GST structure. GST is not the cause for the slowdown in tax collection, rather the slowdown is the cause for less tax collection. The truth is that tax collection is never much affected by a complicated tax structure. Some cases go to tribunal or court if it is complicated but court cases have not started so far for GST. So it is only a glitch that can be fixed by common sense approach and not by so-called experts. Cost accountants, chartered accountants, and consultants are giving statements maligning the GST structure but they cannot say what exactly is wrong. Even Nobel laureate Abhijit Banerjee has said that GST should have been brought after taking more time and settling all possible problems. He is not possibly aware that it took more than 10 years of consultations and visits abroad by finance ministers to find out systems in other countries based on which our GST system, which is a unanimous model and is a triumph of fiscal federalism, has been introduced. More time would not yield any more solutions, which could be found only when the system gets going. Ours is a better model than Canada’s as we have included sales tax; In Canada, sales tax is extra for different states.
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First Published: Sun, November 03 2019. 19:42 IST