Business Standard

How prone is GST to evasion?

The GST has been tried for decades in other countries, particularly in Europe. Even then such frauds are taking place there

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Sukumar Mukhopadhyay
Recently, the finance minister of a state, who was also responsible for designing the GST and is now a member of the GST Council, made a remark that some shell companies are coming up which are designed to evade GST.  According to him, this could have been avoided if more experiment was conducted before introducing the GST. I am writing here to remove such a misconception that by more trial run of the GST such evasion could be avoided.  The GST has been tried for decades in other countries, particularly in Europe.  Even then such frauds are taking place there.
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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