Every tax system is meant to be contrived because it is meant to take out some amount of money from the pockets of people some amount of money that brings some additional sum of money to the State Treasury. Taxes are indeed a vital ingredient and form a huge chunk of revenue for the Government. Thus, it is imperative to keep judicious rates and collection mechanism so that the existing set of taxpayers don’t feel exploited. This will certainly lead to an improvement in tax collections, which is one of the aforementioned objectives behind a seamless transition into the GST regime.
Let us now discuss in detail about five of the most useful tips that need to be used for an effective convergence into GST regime.
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Authenticity
The rules that are mentioned in the GST Bill recommended by the Finance Ministry needs to be implemented in the most astute manner. The professionals that assess the taxes and the ones that are responsible for the collection of revenues need to be on the same page as far as interpretation of the rules is concerned. The documents that are relied upon by the tax professionals like C.As and Company Secretaries need to authenticate what they interpret and also should look to go the extra mile.
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Administrative efficiency
The couple of administrators that are responsible for running the country- State and Centre must be capable and should possess the expertise so that the one assessing the business do the same as per the information they receive. It is also important for the law professionals to keep a tab on the daily happenings with quality GST Bill news. This would allow them to analyze the Assess-Revenue relationship and will also give an insight and understanding of the term under the latest laws.
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Acceptability
It is important to note that once certainty and clarity are available on any topic pertaining to GST Bill, the tax professionals tend to become more acceptable to both the parties involved- the most visible challenge is quite often the inconsistency in operations. This also showcases how the integrity of law is upheld despite being aligned to the same.
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Adaptability
This suggests that one needs to be adaptable to all kinds of changes so that rigidity is not visible in any area. A minute technical glitch can certainly be beneficial in maintaining a healthy business environment where people often tend to build a certain level of trust and that trust is seen between the tax evaluators and the revenue generators. It must also be noted that as a certain business model evolves, business entities may be required to adapt to the rules so that they can make the most of the GST Bill news that are available at some information channels.
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Accountability
Despite the fact that all the mantras mentioned above might be very well in place, the GST Bill and its application will not be sustainable in the absence of accountability, which is also the last of the 5 useful tips. Accountability must lie with the tax evaluators as well as the ones responsible for generating revenue. There is no doubt that tax evaluators that indulge in foul play must be brought to notice. But, the officials that are responsible for calculation and verification must also be held responsible for the inconsistencies involved in the application of rules.
To quote an example, it has often been witnessed that an evaluator that is involved in such activities and that too extending over a period of time, would be required to follow the same method for availing input credit. In the new regime, it is recommended that such evaluators must be asked to give a due explanation of their findings so that the evaluator should come to the realization that what was once doing just fine isn’t solving the purpose any longer.
Thus, it is recommended that the tax guidelines that are clearly drafted need to be enforced in a judicious manner so that it can boost the confidence of the tax professionals, thereby giving a much-needed impetus to the entire structure of tax revenue. It will also be pivotal in reducing the temptation to evade taxes, reducing the levels of profitability in a parallel economy. It can also be inferred that without the application of the useful tips that are mentioned above in the GST regime, it would just be another run of the mill tax structure that the Government is trying to promote.
