𝗨𝗻𝗿𝗮𝘃𝗲𝗹𝗶𝗻𝗴 𝘁𝗵𝗲 𝗜𝗻𝘁𝗿𝗶𝗰𝗮𝗰𝗶𝗲𝘀 𝗼𝗳 𝗜𝗻𝗱𝗶𝗿𝗲𝗰𝘁 𝗧𝗮𝘅, 𝗢𝗻𝗲 𝗖𝗹𝗮𝘂𝘀𝗲 𝗮𝘁 𝗮 𝗧𝗶𝗺𝗲!

𝗨𝗻𝗿𝗮𝘃𝗲𝗹𝗶𝗻𝗴 𝘁𝗵𝗲 𝗜𝗻𝘁𝗿𝗶𝗰𝗮𝗰𝗶𝗲𝘀 𝗼𝗳 𝗜𝗻𝗱𝗶𝗿𝗲𝗰𝘁 𝗧𝗮𝘅, 𝗢𝗻𝗲 𝗖𝗹𝗮𝘂𝘀𝗲 𝗮𝘁 𝗮 𝗧𝗶𝗺𝗲! India's taxation landscape underwent a seismic shift with GST in 2017. Let us delve deep into this transformative legislation and what they have achieved.

You can read the whole post at: tweethunter.io/thread-finder/abhishekrajaram/ec047a83-41c1-4190-a024-c4fff89089b2

𝟭. 𝗖𝗼𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶𝗼𝗻𝗮𝗹 𝗔𝗺𝗲𝗻𝗱𝗺𝗲𝗻𝘁: Creating the Foundation for GST: The 101st Constitutional Amendment paved the way for the roll-out of GST, presenting a unique cooperative federalism model.

This amendment allowed both the Centre and States to concurrently levy GST, a feat that was previously constitutionally unattainable. But still we have issues like levy of GST on Royalty or Ocean Freight which needs clarification.

2. GST's Input Tax Credit (ITC) Mechanism: Eradicating Cascading Taxes Prior to GST, a significant issue was the "tax on tax" problem, where products were taxed at every stage of the supply chain without any set-offs, which led to inflating prices.

GST promised the solution to the ITC issue by allowing businesses to offset their GST liabilities against the tax paid on their inputs.

But for all practical purposes, claiming ITC in itself has become a problematic area, which has led to notices, blocking of ITC, freezing of bank accounts, and cancellation of registration.

𝟯. 𝗨𝗻𝗶𝗳𝗶𝗲𝗱 𝗠𝗮𝗿𝗸𝗲𝘁 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗘𝗻𝗱 𝗼𝗳 𝗖𝗵𝗲𝗰𝗸 𝗣𝗼𝘀𝘁𝘀 One of GST's underrated achievements is how it transformed India into a singular, unified market. Before GST, interstate commerce was a tedious affair.

The labyrinth of state-specific taxes meant businesses often had to navigate a maze of regulations, and the omnipresent interstate check posts resulted in significant logistical delays. With GST replacing multiple state taxes, these check posts became redundant.

The result was never as promised. Everyday goods and vehicles are detained and seized because of missing some relevant details in e-way bill or expiry of e-way bill which leads to heavy tax and penalty.

These are challenged and won later but refund (of tax deposited for release of goods & vehicle) have its own challenges.

In essence, GST, while not without its initial teething problems, still continues. Even after Six plus years of its implementation, it is not free from problems.

The recent flood of Notices U/s 73 reminded us of the teething problem we had in the initial period of GST but no one accepted this, and the tsunami of GST Notices might end up in hitch-pitch order, which might be challenged later. This will lead to another round of Litigation.