Between Tax Avoidance and Tax Evasion
Can we say GST is foolproof an plugged all holes whaich were leaking?
Experts said GST leaves less room for evasion by design. Experts explain how each sale and purchase will be tracked, leaving no room for tax evasion.The new filing regime requires monthly, quarterlies and annual returns, along with invoice matching.
Methods of evasion changes from time to time. So, if one door closes another just opens up.
Given that GST has adopted a multi slab rate structure, there is a gap for tax avoidance strategies to creep in.
A photo studio in the Delhi's upmarket, will not charge you tax if you pay cash. If you pay by card, the studio owner will ask for 15% tax.Despite the government's efforts to stop tax evasion with GST, this is unlikely to change.
Many kirana stores and middle class restaurants , tell customers, ""do not ask for Bill. We will not charge you GST"".
Customer is happy.
How government is going plug these holes in system? more