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GST network operator faces probe

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Tax authorities are investigating Goods and Service Tax Network (GSTN) for possible service tax evasion. GSTN was floated to create the technology platform for combined indirect tax levy .
CEO Prakash Kumar of GSTN, where banks and financial institutions are majority shareholders, was initially summoned by service tax superintendent with the books of accounts, details of funds received from the Centre as well as a copy of the agreement with Infosys, which is designing the system along with payments made to the IT major. An official, however, said that the “summon does not exist now“, indicating that the letter which had been issued last Saturday was withdrawn.
“I have not received anything,“ GSTN CEO Prakash Kumar told TOI adding that the GST network operator had paid all taxes on time including service tax. Tax experts said GSTN was liable to pay service tax under the rules.
“Though service provided by government is in negative list but service provided by a company to government is not exempted from service tax. Any consideration received by one person to another is taxable and in this case consideration was received from the government for developing GST Network for the government. The service provided by GSTN to the government is neither under the ne gative list of services nor exempted under any exemption. Hence, service tax is applicable on consideration received by GSTN for providing taxable service of developing GSTN to the government,“ advovate R S Sharma said.
The transition roadmap for GST has been a major friction point for customs and excise officers as they see it as erosion of their authority .
Najib Shah, chairman of the Central Board of Excise and Customs, even lodged a protest with finance minister Arun Jaitley at a public gathering. While the government has said that the interests of officers would be protected, finance ministry officers said any indiscipline would not be tolerated. “No wing of the government can decide what will be its jurisdiction. GST is areform where the powers have to be shared with the states for benefit of the country ,“ said an officer.
Times of india New Delhi,18thFebruary 2017

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