Upset at the centre ceding most of taxpayers under the goods and services (GST) to states, the association of Indian Revenue Service Officers from customs and central excise on Monday passed a resolution at its general body that in its present form the proposed tax would not be good for the country.
The Association will represent to the union finance minister Arun Jaitley on Tuesday its case, an official said.
“Centre has given 90% of taxpayers below Rs 1.5 crore to states, for tax payers above that the it’s a 50:50 division….On integrated GST, despite law ministry’s opinion it has been agreed to empower states on administration,” the official said.
“This kind of arrangement will lead to litigation, hurt GDP and tax collections, ” the official told ET after the general body meeting that was attended by about 400 officers including representative of the association from each state.
The meeting also discussed how Central Board of Excise and Customs (CBEC) has been kept out of the decision making process for GST.
“Central officers are giving training to state officials on GST… The central board of excise and customs has adopted changes in technology and taken a number of initiatives to make the administration friendly to taxpayers,” the official of the association said adding that the central service officers who are direct recruits are group A and they had been put lower than the group ‘B’ service of state.
“Members expressed deep anguish over these developments at the meeting…,” the official said adding that they hoped some action would be taken by FM.
At the last GST Council meeting, the centre decided to allow states to handle 90% of assesses below Rs 1.5 crore and 50% above this threshold. More than 90% of assesses in service tax are below the threshold of Rs 1.5 crore.