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IRS officers protest against GST council's decisions

IRS officers said without any experience, the state officers will find it difficult to implement GST and it will create chaos among taxpayers.

, ET Bureau|
Jan 30, 2017, 05.55 PM IST
The decision of the Council to give powers to States is unconstitutional and illegal, IRS officers said a statement
MUMBAI: About 70,000 officers of the Central Excise and customs have protested against the decisions of the GST council which they say will make the new regime and its implementation almost entirely a responsibility of state governments and not that of the Centre.

"The GST council on January, 16 has taken three decisions as follows: to divide tax payers in the ratio of 90:10 below turnover of Rs 1.5 crore and 50:50 above Rs 1.5 crore in GST; to empower the state officers for IGST i.e. tax on interstate supply; to empower state to collect tax on high sea sale till 12 nautical miles," IRS officers said a statement.

"For the last ten years the central revenue officers are working for implementation of GST. The constitutional amendment, draft GST law, GSTN network, training of central and state officers, etc. have been carried out by central revenue officers. The revenue officers from the Centre have experience of handling the services sector and the State hasn't had any power to levy tax on services," the statement said.

Despite all this, "the Council has handed over 90 per cent of the taxpayers to State without any logic. While the constitution has given powers of Integrated GST (IGST) -- levied on movement of goods and services between states -- only to the Centre, the council has taken a decision to empower state officers also. The state have no jurisdiction over seas. That is under the exclusive jurisdiction of the Centre. However, the council has handed over that jurisdiction too to the State. Thus, the decision of the Council is unconstitutional and illegal," the statement said.

The statement said that without any experience, the state officers will find it difficult to implement GST and it will create chaos among taxpayers.

GST mandates registrations in each state which many taxpayers have said will prove extremely cumbersome.

For example, State Bank of India, which at present has only one registration with centre, may be forced to take 4,000 registrations under GST.

"The officers have demanded that there should be minimum 50:50 division of taxpayers between centre and state and that. IGST and high sea sale power should remain with the centre as per the country's constitution," said the statement.

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