1. Introduction
Since its rollout on July 1, 2017, GST has been a landmark reform replacing multiple indirect taxes with a unified regime. While its framework is constitutionally robust, practical implementation has seen mixed success due to legislative tweaks, judicial scrutiny, and administrative challenges.
2. Vision vs Reality
The 101st Constitutional Amendment aimed to simplify taxes, expand the base, and create a unified market. While the GST Council has largely functioned in a spirit of federalism, tensions persist—especially on compensation and state autonomy.
3. GST in Courts
Judicial rulings have clarified many aspects:
- Mohit Minerals: IGST on ocean freight struck down.
- VKC Footsteps: ITC refund limited under inverted duty upheld.
- Safari Retreats: Allowed ITC on leased buildings.
- Courts have emphasized procedural fairness and curbed arbitrary enforcement.
4. Key Challenges
- Frequent Changes: Over 250 circulars and amendments have added complexity.
- ITC Disputes: Reconciliation rules and credit blocking under Rule 86A remain controversial.
- Harsh Penal Provisions: Minor lapses often attract criminal action.
- Parallel Proceedings: CGST/SGST audits on same issue violate legal safeguards.
5. Role of GST Advocates
Advocates now advise on classification, supply valuation, compliance strategy, policy representation, and litigation—bridging tax law, constitutional principles, and tech systems.
6. Way Forward
- GSTAT: Its absence has burdened High Courts. Tribunal setup is urgent.
- Simplification: Consolidate laws to reduce ambiguity.
- Data-Driven Adjudication: Use AI and GSTN smartly, but retain human discretion.
- Expand GST Base: Include electricity, real estate, petroleum, and liquor for credit continuity and tax neutrality.
7. Conclusion
Despite hurdles, GST remains a landmark reform. Continuous refinement, judicial guidance, and proactive policymaking are key to realizing its full potential.
You may read the full article here: https://www.taxmann.com/research/gst-new/top-story/105010000000026784/eight-years-of-gst-in-india-a-legal-retrospective-and-road-ahead-experts-opinion
A PDF copy is attached for your convenience.
We hope you find this piece insightful and welcome your thoughts and feedback.
(The author is a practicing advocate, Co-Founder and Legal Head of RB LawCorp.
He specializes in GST law. Suggestions or queries can be directed to
ashsharma@rblawcorp.in. The views expressed in this article are strictly
personal.)
