Former chairman of Tax Administrative Reforms Commission Parthasarathi Shome today said government should utilise the postponement period to fix transitional issues relating to Goods and Service Tax (GST).
"... The problem with GST is that it is not an issue (on whether to) bring it or not; again it is oral thing saying that we have waited for long, now let us have whatever," Shome said.
Speaking on the sidelines of an event organised to launch International Tax Research and Analysis Foundation here, he said, "If you look, the first report on GST was written at the end of 2007, 31st December... There it was a GST; then slowly it has slid.
"Today with states having a band... They have opened up the number of rates completely, whereas in VAT there were only two rates and some variations where coming through, so already you have made it complicated," he said.
Shome also pointed out at the exclusion of petroleum among the inadequacies in the GST.
"By leaving petroleum out. You are allowing cascading to happen; also. One per cent tax inter-state is remaining that also will cascade. IGST. Which is inter-state, we don't know what is the situation," he said.
"So, you will have to look at all these changes and then utilise this postponement period to see that if you can still do something or what are the transitional issues that you need to really fix..."
"To me, when I see the structure and when I see the state of perception, I think the more time we get to prepare the better it will be," he added.
International Tax Research and Analysis Foundation (ITRAF), led by eminent economists, leaders from industry, and experienced tax professionals was launched today with an aim to carry out research and analysis in international taxation to ensure superior tax policy and effective tax administration in India.
Shome is the Chairperson of ITRAF, and its founder members include Mohandas Pai, Chairman, Manipal Global Education; Suresh Senapaty, former Chief Financial Officer and Member of the Board, Wipro Limited; V Balakrishnan, former Chief Financial Officer and Member of the Board, Infosys Limited, among others.
ITRAF will act as a key enabler for Indian economy to attain its full potential globally as Indian business increases its share of global trade and commerce, members' associates with the foundation said.
It will conduct extensive research on the present international tax regulations, benchmark them with global standards, practices and experiences and make appropriate recommendations to policy makers, they said.
ITRAF is a company registered under Section 8 of the Companies Act, 2013 and will be headquartered in Bengaluru.
