Gujarat HC says, “Going to moon is easier than understanding GST”

Gujarat High Court Justice J.B. Pardiwala told a Central government lawyer that the Court would rather go to the moon than understand the policies and complexities of the Goods and Services Tax (GST) regime.

The Gujarat High Court stated on February 11, 2022, while hearing a case related to the GST tax system, “It is easier for us to reach the moon than to understand the intricacies and policies of GST.” “It is beyond our comprehension.” This amplifies what CAIT has been saying and calls for immediate action to revamp the system. Both Shri Bhartia and Shri Khandelwal charged the State Governments with greatly distorting the GST tax structure and killing the basic fundamentals of GST, making it the most complicated tax system, undermining Prime Minister Shri Narendra Modi’s vision of ease of doing business.

A recent Gujarat High Court observation on the country’s taxation system and GST has exposed the complexities and hollowness of the GST tax structure in India, as well as vindicated the Confederation of All India Traders’ (CAIT) long-held position that the GST has emerged as the most complicated taxation system in the country.

According to the CAIT, following the Gujarat High Court’s strong remarks, it is most appropriate that not only the Union Finance Minister, but the GST Council and, more importantly, the Finance Ministers of all the States that are members of the GST Council, take immediate cognizance of such observations and corrective steps be taken to make GST a robust and well-defined taxation system- said CAIT National Mr. B.C.Bhartia, President, and Mr. Praveen Khandelwal, Secretary General, issued a joint statement today. The CAIT has called for a comprehensive review of the GST Tax Act, the GST portal, and the GST Act to be defined after extensive consultations with stakeholders.

The CAIT has urged Union Finance Minister Smt. Nirmala Sitharaman to constitute a High Power Joint Committee headed by Union Minister State for Finance to review the GST Act and Rules. Mr. Bhartia & Mr. Khandelwal said that the observations of the Gujarat High Court must not be taken lightly. There is a need for a greater introspection as to what compelled the High Court to make such strong remarks.

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