Final tax collection should be preferred policy and not first collect then refund or allow credit- for simplicity and also to avoid chances of tax rackets

Final tax collection should be preferred policy and not first collect then refund or allow credit- for simplicity and also to avoid chances of tax rackets https://www.taxtmi.com/article/detailed?id=8828 The article advocates replacing collect-then-credit/refund regimes with final tax collection to simplify administration and reduce fraud. It identifies Input Tax Credit mechanisms as creating carryforwards, paperwork, and avenues for bogus invoices. Recommended measures include exempting certain suppliers from GST on inputs-thereby reducing ITC-and concentrating output tax liability on large or responsible taxpayers (PSUs, banks, insurers, major manufacturers, and service recipients). Replies propose flat rates without ITC or supplier-based fixed-percentage remittance to eliminate set-off claims and curb tax rackets. en-us Tue, 19 Nov 2019 10:15:32 +0530 Fri, 22 Aug 2025 23:44:45 +0530 TaxTMI RSS Generator Final tax collection should be preferred policy and not first collect then refund or allow credit- for simplicity and also to avoid chances of tax rackets https://www.taxtmi.com/article/detailed?id=8828 The article advocates replacing collect-then-credit/refund regimes with final tax collection to simplify administration and reduce fraud. It identifies Input Tax Credit mechanisms as creating carryforwards, paperwork, and avenues for bogus invoices. Recommended measures include exempting certain suppliers from GST on inputs-thereby reducing ITC-and concentrating output tax liability on large or responsible taxpayers (PSUs, banks, insurers, major manufacturers, and service recipients). Replies propose flat rates without ITC or supplier-based fixed-percentage remittance to eliminate set-off claims and curb tax rackets. Articles Income Tax Tue, 19 Nov 2019 10:15:32 +0530 https://www.taxtmi.com/article/detailed?id=8828