Experts urge balance between compliance ease and revenue safeguards in GST 2.0 rollout
GS3Economy · S&T · Environment · Security· Fiscal policy, budget & taxation (GST)· Mains·
Why in news
Tax officials and experts highlighted the need for a 'Trust-First' philosophy in GST 2.0 to balance ease of compliance with revenue safeguards during a seminar hosted by ICSSR and CESS.
Background
The seminar addressed the 'One tax and Two Administrations' model and the role of the GST Network in digital transformation. Key reform areas identified include inverted duty structures, rate rationalization, and fraudulent registrations.
Facts for Prelims
- BodyCESS: Centre for Economic Studies and Services
- FactGST Network: The digital infrastructure driving the GST system's transformation
- FactInverted duty structure: A situation where the tax on inputs is higher than the tax on finished goods
For Mains
Q. Critically analyze the structural challenges of the 'One tax and Two Administrations' model in the GST regime and suggest measures to enhance compliance ease.
Dimensions to cover in your answer
- Revenue leakage: Difficulty in curbing fraudulent registrations despite digital tracking
- Structural friction: Coordination gaps between Central and State tax administrations
- Market distortion: Impact of inverted duty structures on manufacturing competitiveness
Keywords: Trust-First philosophy · Rate rationalization · Inverted duty structure · Digital transformation · Compliance ease
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