Tax officers say GST would curtail their scope of work, write 11-page letter to PMO

THE LETTER POINTS TO HOW THE CENTRAL GOVT WILL LOSE OUT ON REVENUE WORTH ₹1.10 LAKH CRORE BECAUSE OF DUAL CONTROL OF TAXES UNDER GST

NEW DELHI An association of tax officers has written to the Prime Minister’s Office expressing apprehensions over the implementation of the Goods and Services Tax (GST) and its impact on the central government’s revenue collection.

In the 11-page letter, the association has expressed reservations against the limitation on the functions of central officers in charge of indirect taxes.

These are officers from the Indian Revenue Service (IRS), in the central government departments of customs, central excise and service tax.

The officers feel that their career growth will be stunted with GST sion to divide tax payers with annual turnover of up to ₹1.5 crore, between the Centre and the states in the ratio of 90:10, the IRS officers feel that their scope of work will be severely limited.

“With a shrinking assessee base, the career growth prospects of IRS officers also get stunted,” said Anup Srivastava, president of the IRS association.

The letter to the PMO proposes revising of this ratio to a 50:50 division between states and the centre.

Currently, there are 30,000 officers with the central government for the administration of indirect taxes and an equal number with the states. But with only 18% of India’s tax payers available with the central government officers, their work will be reduced perhaps putting the risk.

“Our officers have tirelessly been working on GST for last 10 years and wish to nurture it, having got requisite expertise” says the letter.

The letter also points to how the central government will lose out on revenue worth ₹1.10 lakh crore because of dual control of taxes under GST.

The unification of all indirect that states will now be able to tax services, a power that at present lies with the central govern ment.

“Service tax is new to states and we are concerned about how they will manage it. They are used to a single worksheet for VAT. We have highlighted this in the letter,” said Srivastava.

The letter also points out how the GST network or the IT back bone of the new tax does not have any senior IRS officer heading the team.

A top officer in finance minis try assured that the government would take all necessary steps to ensure that the GST is properly rolled out

“The concerns and fears of tax officers are understandable but the government will obviously not implement a faulty GST ” the