GST – any loopholes?

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Goods and Service Regime was a full proof plan to prevent the theft of tax. But has it achieved its target?

Well, the “jugaad” has again proved to be more powerful than any rule or tax regime. Traders have found out a way to pass through the layer of tax without much problem.

The requirement of a license for transporting goods to a different state is just a myth, at least for these horse-cart traders. They don’t need the permit or electronic billing system, nor any need to pay the tax.

Since e-way bills are applicable only for motorized vehicles, traders have shifted to medieval methods of transportation to save GST.

Goods above the value of INR 50 thousand need an electronically generated bill. However, an anti-tax mechanism has been constructed that saves them from showing the bill to a GST inspector.

The finance ministry aimed at creating a full proof plan to roll out any defaulters, but horse-carts came at the rescue of these traders ensuring that tax evasion and non-payment of taxes always continue as a part of our economic ecosystem.

 

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