NEED FOR UNITY...

CESA-Mumbai proposed to hold a special meeting exclusively on GST. Accordingly, AIACEGEO held the meeting at New Delhi on 10^th and 11^th September 2016. Apart from other issues, the main resolution Passed by the Association is annexed.

The current Tax Regime switching over to GST is based on Market / Consumer demand. Market will play the supreme role, as customer is the king in the market. Whatever rules for GST are passed, will definitely be executed effectively & efficiently by us.

After the first GST meeting, All India VAT employees alleged as well as threatened to go on strike demanding Service Tax Assessees below a certain threshold to be handed over to them. The demand is just like Talibanisation and asking for a ransom from the Centre like an unlawful outfit. The Services of the State, irrespective of the Department, is always a common regular script for local film industry outright exploitation, high handedness, unchecked corruption, nothing moves without the exchange of something. Still they do not want to leave an inch, although the territory does not belong to them and the area of operation is also quite new to them.

In our resolution dated 10^th Sept., we have demanded parity that our officer’s length of service, irrespective of the Gazetted/Non Gazetted (Group B) be posted / accommodated in the hierarchy of the theory “One Nation One Tax’’. Same work with same career prospects and facilities………..  In the hierarchy having service of more than 20 years to 30 years, Superintendents should be placed in Deputy Commissioner's Post in GST and Inspectors in the AC's Post. Rules should be made simple, so that there is no requirement for any facilitator extending corrupt practices like CHA in Custom House and CAs in Service Tax. Further, it will be in the fitment, that turn-over of more than 100 Crs., 10 % assessees be audited by them similarly 10% of less than  1.5 Crs assesse be audited by us. For cross-checking, the tax collected by us, will be audited by them and the tax collected by them will be audited by us, so that the quality of competition in the organization is maintained.

          It would have been more appropriate on the part of the STATE VAT should make efforts with their counter parts in Central Govt. Officers’ Association consulted them to make the opportunity for collective bargain and how to improve the conditions of working promotions on a give-and-take basis as both the State VAT and CBEC Group B and below officers are facing more or less similar problems of stagnation and career prospects problem. Hierarchy in State and Center is following the British legacy they take care of themselves and forget the others below them, this should not happen in the ensuing new Tax Regime.

          The officers should not be delighted as the FM retained around  11 Lakhs Service Tax assesses with Centre because he is well aware that to administer Service Tax, the state machinery is not equipped with knowledge as well as manpower. No State Finance Minister has objected because they are aware of their own weak position but this is a temporary arrangement. We should think for a long term solution not to be happy with this short term arrangement. We should demand the control ……as well as powers of audit and anti-evasion and more power for adjudications and for the redressal mechanism so that the body will remain Jumbo as like today without slicing a little.

Steering Committee is scheduled to be held on 01^st Oct., 2016 at Mumbai. The deliberations and outcome will be informed shortly.

RESOLUTION ADOPTED BY AIACEGEO IN THE AEC MEETING HELD ON 11^th September, 2016 IN NEW DELHI

TECHNICAL

1)    Assessment or Scrutiny responsibility should be distributed from Superintendent to Additional Commissioner level depending on the monetary limit and assessable value, number of assessees and number of credit documents. Inspector should be in the workflow in the ACES before the Returns / Registrations are verified / scrutinized by the Superintendent.

Justification

a)     Parity with State VAT & Income Tax in tax administration.

b)    To do away with Review mode of Tax assessment and instead adopt Revision mode.

c)     To minimize litigations and avoid revenue being locked up.

d)    To ensure Officer Orientation in finalizing higher volume of Tax.

e)    To ensure proper distribution of responsibility and accountability.

2)    The Assessment Structure should be 1:2:4 between JC/ADC : DC/AC : Supdt.

3)    Between Scrutiny and Appeals – Powers of Review should be delegated between AC, Jt / Addl Commissioner & Commissioner to help facilitate the Trade.

4)    In the Adjudication procedure any adjournment/ non-appearance by parties, said period should be left outside the statutory three / five years time limit to write off demands as proposed under the model GST Laws.

Technology

1)    GSTN Platform - Presently the stake of the Private Organizations in GSTN is 51% Private and stake of Govt. is 49% only (Central + State). GSTN should be fully under Govt. control to ensure the data security is not compromised.

The custodian of the sensitive data of Crores of Assessees in the GSTN should rest with the Govt. (Central + State).

2)    The present status / working of ACES leaves much to be desired. In spite of 7 years of implementation of ACES, not a single Report has been reduced by the Board for the field.

The Report Generation Module in ACES is very rudimentary as not many reports useful to the field formations is available. There are no up to the month report in CEX in ACES till date.

Further, there are no useful Service Tax Revenue Reports in ACES either based on the Returns or NSDL data.

Many a times lack of useful reports makes officers from the field formation to go to the assessees.

The EDW could have been useful if the access had not been limited to only few USERS per Commissionerate. The EDW access is not only useful for Statistical Information, but the wealth of information can be used by the Anti-evasion Wing of the Commissionerate. On this account our own data cannot be used effectively by the Deptt. for plugging the Revenue Leakage.

It should be ensured that we do not carry the negative legacy of ACES in the GSTN era. The design of the reports should be such that it is self explanatory and ready to use and satisfies the need of the Ministry/ Board. It should eliminate the need for generating the Reports at Range Level. Many a times lack of useful reports makes officers from the field formation to go to the assessees.

3)    The access of ACES / GSTN Portal for the Officers should be made through Internet so as to enable the Officers at all levels to access the GSTN/ ACES System on 365 X 24 X 7.

This will not only increase the efficiency of the Deptt but also drastically reduce the recurring expenditure involved in getting the BSNL / MTNL MPLS leased Line or VPN o BB.

4)    Presently the access of 1 User of NSDL EASIEST provided to each Commissionerate is grossly inadequate. Again, the data belongs to the Deptt and the Officers are unable to use the data extensively as the access is restricted to only 1 User. 

Infrastructure

1)    Provision of Cadre Wise entitled working space with all necessary equipments like laptops, desktop PCs, Printers etc. in uniform manner throughout the country.

2)    Every Group B Officer of CBEC should be provided with a laptop and a 4G Data Card. Presently the benefit of 1% incremental revenue scheme has never percolated to Gr B Officers.

3)    The proposals for Residential and Official accommodation should be cleared by DGHRD and Board in a Time Bound manner.

HR Policies

1)    A long term notified HR Policy should be evolved for the entire Organization in consultation with the Staff/ Officer Association. Any future Restructuring/ Re-organization as a fall out of GST should be in consultation with all Staff Association.

2)    Structure of the Deptt should depend on the workload depending on number of Returns and documents to be scrutinized and in relation to declared duties and responsibilities of the Officers.

3)    Audit, Intelligence and Anti-evasion wings should be strengthened and well equipped.

4)    Well defined Training Mechanism. Training based on Model Law to be opposed. Full training should also be given after the Law / Rules come in to force.

 Since the GST Act, Rules and procedures are evolving, depending upon the situation insertions or modifications to the above proposals have also to be considered as a continuing process.