GST poised to shut down taxation posts

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IMPHAL, Jun 11: Goods and Service Tax (GST) which would be enforced throughout the country from July 1 with the principal objective of ‘one Nation, one tax’ would render all taxation posts of the State defunct.

GST Act has no provision to keep taxation check-posts operational even though these check-posts have been main points for collection of casual taxes by State Governments.
Moreover, goods transported along highways are checked at these points so as to ascertain whether the transporters have paid taxes for the goods they are transporting.

Altogether two taxation check-posts and one taxation outpost have been functioning under the State Government’s Taxation Department, informed an official source. The two taxation check-posts are located at Hengbung, Senapati district and Jiribam while the taxation outpost is located at the border town of Moreh.

Once the GST Act comes into force, all these taxation check-posts and outposts would cease to exist. In their place, enforcement cells would be opened and these cells would verify whether goods transported along highways conform to the GST Act or not.

As GST would operate through internet service, they would not be any need for conventional documents. Details of suppliers of goods as well as their recipients would be uploaded in a computer system in advance. Goods transported under this system would be verified by mobile enforcement cell. As such, there would not be any need to keep stationary taxation check-posts and outposts, informed the source.

Nonetheless, officials of Taxation Departments of several States have been studying whether mobile enforcement cells can collect casual taxes for goods loaded at different points of highways and transported to different destinations. The Government would take a decision on the matter.

Notably, Hengbung check-posts has been earning revenue of around Rs 20 lakh in a month in the form of casual taxes. The same taxation check-posts managed to collect casual taxes to the tune of around Rs two crore in a year. In case, goods loaded at different points of highway cannot be checked by mobile enforcement cells, there would be free flow of such goods, added the source.

Source: The Sangai Express

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