In a recent dialogue with Tarun Nangia and industry experts, S Ravi, former Chairman of BSE, delved into the discussion surrounding the proposed increase in the GST arrest threshold from 2 crore to 3 crore. Shedding light on the implications for taxpayers, Ravi emphasized the industry’s persistent demand for a higher threshold owing to concerns over potential arrests and pressures on the finance ministry to address the issue.
While the proposed increase appears modest, Sethurathnam Ravi noted that industry stakeholders are advocating for more significant adjustments. However, he acknowledged the government’s dilemma regarding the balance between supporting honest taxpayers and combatting fraudulent tax practices, which have been a significant concern given their widespread prevalence.
According to Ravi, the calibrated approach to raising the threshold reflects the government’s cautious stance, particularly in light of the challenges posed by fraudulent tax invoicing. With the introduction of E-invoicing, the government seeks to streamline tax administration while minimizing opportunities for malpractice.
Discussing the broader taxation landscape, Ravi emphasized the importance of striking a balance to prevent undue panic or hysteria among taxpayers. He highlighted systemic issues within the taxation framework and underscored the need for transparent and consultative approaches to tax enforcement.
S Ravi BSE, Former Chairman proposed various techniques, including faceless engagements and consultation with taxpayers before issuing notices, as effective means to address interpretation difficulties and ensure fairness in tax administration. By fostering open dialogue and understanding stakeholders’ perspectives, Ravi advocates for informed decision-making and resolution of taxation challenges.
In conclusion, Ravi’s insights underscore the complexities inherent in tax policy and enforcement. As stakeholders navigate evolving tax regulations, fostering collaboration and transparency remains essential to uphold the integrity and fairness of the taxation system. Through proactive engagement and strategic reforms, policymakers can work towards a more equitable and efficient tax regime that serves the interests of all stakeholders.
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