TaxTMI 
TaxTMI 
The Goods and Services Tax (GST) came into force in July 2017 with the promise of One Nation, One Tax”. The reform was praised as a significant change that was supposed to simplify the life for both businesses and taxpayers. However, after eight years, the structure of the GST remains complex. Those who interact with it daily understand that the reality on the ground tells a different story.
Across the country, genuine taxpayers are increasingly finding themselves caught in show cause notices and audits by tax authorities. It is alarming that many of these notices are based on assumptions rather than facts. A minor mismatch in returns or data, an error in documentation, or even a vendor’s mistake is enough to trigger a show cause notice or detailed audit by tax authorities which are painful as well as huge time consuming both. And instead of clarification, businesses are often met with allegations of “fraudulent activities” or “wilful suppression.”
GST was also meant to reduce human interference through technology. Ironically, the human interface has only grown stronger and more unpredictable. Input Tax Credit is blocked without proper justification, Refunds are delayed, and registrations etc. are rejected without consideration of reply submitted by the taxpayers.
For small and medium businesses (MSME sector), this isn’t just a compliance headache, but it’s a survival challenge. Time and money that could have been spent on growth and innovation are instead lost in defending against false and vague notices and chasing redressal through appeals and adjudication.
The real concern lies in how it’s being enforced. If businesses are treated as suspects by default, trust breaks down. If technology is used to monitor but not to understand, then it fails its very purpose.
GST doesn’t need another overhaul. What it needs is sensitivity in administration, accountability in enforcement, and above all, recognition that not every mismatch is malice and fraud.
”In short, “The Govt. Must Trust Businesses and Industry To Reduce Litigation and Ignite Fast Growth of Economy.
By
Adv. CA. Ram Akshya
FCA, Law Graduate, Ex-PwC, Ex-EY | Author | Speaker | Expert in “GST, Customs & DGFT Matters”
Notes: Supported by Ms. Anjali