Letter to BS: Hopeful that one day GST will be a 'good and simple tax'

This refers to “GST: An unappreciated reform” by Mukesh Butani and Tarun Jain (June 29). I fully agree with their views on GST. Rolled out three years ago, the goods and services tax or GST was the biggest reform in indirect taxes system in India. Initially, all cha­nges are subject to challenges, criticism and difficulties. It was a new system after 70 years. We have to be accustomed to a new system. A lot of learning is needed for the businesses, government departments, the legislatures and the various arms of the judiciary and this process needs time.

However, the return system of GSTR 1, 2 and 3 was deferred and hence, the whole system was cha­nged to give relief to the business community. The system was not ready to make such changes, he­nce system glitches were noticed and rectified. The GST system is so large, it needs time to adapt to any major changes.

I would like to say the business-to-business community was also not ready. Till today, they are not able to take out reports needed for the GST compliance from the system. We are blaming it on GSTN glitches but if businesses are able to capture the required information from the system, they will achieve some success. There are issues and those will be resolved in time. The removal of various central and state value added tax laws, barriers, transaction forms, different rates on one commodity are big achievements. The current pandemic has given time to GSTN to upgrade its system and it must have removed the glitches. We are hopeful that one day it would be a good and simple tax.

N K Gupta New Delhi

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