How to resolve mushrooming GST disputes

GST

---

Jan 25, 2023

The Goods and Services Tax (GST) was introduced with a stated objective to rationalise the indirect tax ecosystem of India creating a common national market for goods and services. ‘Ease of doing business’, economic growth and price rationalisation were the cornerstones of this ‘one nation-one tax’ initiative. The success and effectiveness of tax reforms largely depend upon a robust dispute settlement system, which caters to efficiency in the disposal of disputes, while keeping litigation costs low.

Under GST, disputes arise from differences in tax paid by the assessees and the computation of tax liability by authorities. Such tax disputes can arise due to various reasons during assessment, audit and/or scrutiny of records/accounts, viz. rate of tax, a claim of tax exemption, the claim of an input tax credit, incorrect determination of place of supply, nature of supply (composite or mixed supply), classification of goods and services, etc. While GST is touted to remedy the proliferation of tax disputes and simplify tax administration, early experiences point to the contrary.

Go!