Introduction The federal government is propagating a lot about simplicity and uniformity of the proposed GST regime however the Mannequin GST Draft Act, 2016 doesn’t praise the avowed guarantees made. The twin management of the Central and State Authorities with completely different provisions relating to submitting of appeals and obligatory pre-deposit to be made itself replicate the complexity the assessees would face within the upcoming so referred to as ‘revolutionary taxation reform’. This piece of write up is to handle the provisions relating to obligatory pre-deposit included within the Draft GST Act, 2016. Comparative Evaluation of the Provisions:- There is no such thing as a distinction within the proportion of obligatory pre-deposit at completely different appellate phases in distinction to 7.5% for first appellate stage whereas 10% for second appellate stage thereby main to extend within the quantum of obligatory pre-deposit in GST regime. Presently, obligatory pre-deposit is computed solely on responsibility element or penalty element if solely penalty is in dispute. Nonetheless, the computation of obligatory pre-deposit in GST regime consists of advantageous, penalties and even curiosity, if ascertained by the order. This additionally results in rising the obligatory pre-deposit in absolute phrases within the proposed GST regime. There’s broad variation within the provisions of CGST and SGST Legal guidelines. The obligatory pre-deposit provision in SGST is harsher. Firstly, if assessee admits sure tax as its legal responsibility, then such tax, curiosity, advantageous and penalties are required to be paid in full and additional 10% is required to be paid of quantity in dispute. Not solely this, the departmental authorities have additionally been empowered to request for ordering extra pre-deposit in severe instances which might lengthen upto 50% of the quantity in dispute. This seems to be unfair as assessees haven’t been given any choice to dispense with the situation of obligatory pre-deposit in deserving instances and apply for keep. It’s sensible phenomenon that futile calls for are raised towards assessees and in meritorious instances, it’s burdensome to even adjust to obligatory pre-deposit of 10%. When no choice of full keep is supplied to assessee, energy to departmental officers for enhancing obligatory pre-deposit in severe instances may be very biased. There is no such thing as a ceiling on the quantity of obligatory pre-deposit as is presently prevalent thereby resulting in diminishing the fitting of enchantment in instances involving Crores of demand whereby it is probably not doable to adjust to even 10% of the obligatory pre-deposit. Earlier than Parting:- It has been concluded in varied judicial pronouncements that appellate treatment is granted underneath the provisions of Statue and the choice of submitting enchantment might be granted on satisfaction of sure circumstances however the circumstances can’t be too harsh and stringent in order to disable assessees from submitting appeals. The provisions of obligatory pre-deposit included within the Mannequin GST Act, 2016 deserves immediate consideration by commerce and trade in order that the professionals and cons might be communicated to the authorities drafting the GST laws.
