Avoidance of dual control :
A taxable person is required to pay both CGST and SGST. Thus, for same transaction, he will have to face two authorities. This will make his life miserable as two authorities may take different view on same transactions. He will face with dual assessments, dual audits, dual demands etc. There will be two revisions, two rectifications and two appeals.
Such dual control is unworkable. A taxable person should be under one authority – either Centre or State. This has been agreed upon in GST Council.
Principle of avoiding dual control is laudable. However, how bifurcation of taxable persons will be made between State and Centre is not clear.
It seems such bifurcation will be done on random basis. If so, this will lead to chaos. In case of taxable persons having multi-state businesses, they may be assessed by State Government authorities in some States and by Central Government authorities in some other States. This will lead to different authorities taking different view on same transaction. Ideally, taxable persons having multi-state businesses (including telecom, insurance) and those predominantly in export and import field should be under control of Central Government.
Industries and businesses restricted to one State should be under control of State Government. This will ensure avoidance of conflicting views by tax authorities on same issue.
This will create problems for consultants also. Some of their clients may be under State Government Control while others may be under Central Government control. Thus, they will have to deal with two authorities.