Business Standard

Avert disaster

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With reference to “No time for software testing now: GSTN chairman Navin Kumar” (June 26), the news on the front page of Business Standard sent shivers down my spine. I faced a similar situation in 1986 in the Bombay Custom House when the computer system was introduced. I was the collector of customs and had to face the terrible situation of failing software every now and then leading to agitation by importers and exporters. All trade and industry associatio­ns used to swoop down on me blaming the stoppage of work. I managed to carry on temporaril­y with manual processes but that was a much simpler situation than the goods and services tax (GST). If all the software fails, the input credit will stop and there will be mass protest. The chairman, Navin Kumar, has said, “We would have loved to have a couple of months more before the roll out.” The government should give him two months and commenced the GST on September 1. There is still time to avoid the disaster.

Sukumar Mukhopadhy­ay New Delhi some mines to non-qualified seekers. Wasn’t it the duty of the officers to detect, for example, a claimant not having the requisite net worth? There can be no defence available if a person has failed to perform to the high standards expected from the senior-most officers.

P Datta Kolkata

It is quite ostensible that the “six” elements listed by him should be present in the insolvency and bankruptcy council to fight against the risk of “organisati­onal rout” or any negative externalit­ies being borne out of the system. A talented pool of legal profession­als can expedite the process of insolvency resolution through an overarchin­g regulatory oversight. As the basic architectu­re appears to be sound, it is only about a fool-proof implementa­tion as recourse for managing defaulted cases of both big and small under the aegis of the Insolvency and Bankruptcy Board.

In contrast, the multiple rates under the GST may create arbitrage opportunit­ies due to “mis-classifica­tion”, as ice cream and yoghurt being a case in point. The GST council needs to be regulated by a unified Central Board of Taxes to triangulat­e between corporate income tax and the GST. Furthermor­e, real-time reporting with minimal errors, accountabi­lity and a dedicated board with the right compositio­n and delegation of authoritie­s can improve load-bearing capacity. Otherwise, “broken” architectu­re of the GST policy and administra­tion may not be able to bear the load of a rapid transition from the old to the new indirect tax regime.

Kushankur Dey Bhubaneswa­r

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