Indian Tax Solution

GST: Tax meet may take up control over assessees issue

The Centre and States could discuss the thorny issue of division and control of assessees under the Goods and Services Tax at the Rajaswa Gyan Sangam next month.

"The issue of administrative and dual control over assessees continues to be puzzling scenario at the ground level. One of the sessions could focus on how the Centre and State tax officials will coordinate over taxpayers," said a person familiar with the development.

Further, with over 80 lakh taxpayers in the GST regime, it was felt that it would be a good platform to increase coordination and discuss roadmaps with State level officials.

The Rajaswa Gyan Sangam, which is the annual conference of officials of the Central Board of Direct Taxes and Central Board of Excise and Customs, will be held on September 1 and 2.

Traditionally, seen as an event where the tax departments discuss their annual strategies and clarify doubts, this time it will discuss efforts to tackle black money as well as GST. In a first, State tax officials have also been invited to the event.

"While the GST Council has already laid out guidelines for how the assessees will be divided, the two- day conference could be a platform for airing views and concerns of tax officials on the issue," said a source.

The division and control of taxpayers under GST, where assessees from central excise duty, service tax and value added tax are now pooled into a single category, was a long debated issue between the Centre and States.

After much to and fro, the GST Council had finally decided that 90 per cent of assessees with a turnover of up to ₹1.5 crore or less would be with the States for purpose of assessment for scrutiny and audit, while the remaining would be with the Centre. Assesseess above this limit would be divided equally between the two using computers that would divide them on a random basis.

"But there are many implementation issues that are still puzzling. Suppose that the State officials get information about one of the assessees with CGST, how will it be done?" noted a tax expert, adding that it is also a matter of concern for many taxpayers who are hoping for clarity on their assessing authority.

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