Tax trauma - On GST Network : Learn Vocabulary (THE HINDU)

Tax trauma - On GST Network : Learn Vocabulary (THE HINDU)

Glitches in the GST regime are increasing the anxiety among Indian businesses

For a reform that was cracked up to be India’s biggest tax overhaul since Independence, the roll-out of the goods and services tax is off to a less-than-desirable start. Over 80 days after its introduction, the GST Network, its online backbone, is struggling to keep pace with the millions of invoices and returns being filed electronically by businesses across the country. The government has extended the deadline for filing GST returns for July, the first month of the GST era, twice. And Finance Minister Arun Jaitley has reiterated an appeal to taxpayers to not wait till the last day, to avoid burdening the GSTN. But even those filing returns well before the last date have struggled. It is clear that the network had not been fully tested for chinks before July. A ministerial group formed by the GST Council to resolve the GSTN’s glitches gave an assurance last Saturday that 80% of the problems would be fixed by the end of October. For a country that takes pride in its IT edge, this is a strange impasse. Critically, for an economy that is slowing down for multiple reasons, even more troublesome is the implication of these implementation stumbles for 85 lakh taxpayers now registered for GST.

Exporters, for instance, have already alerted the Centre that the delayed timelines for filing GST returns (the last of which must be sent in by November 10) will mean that no refunds can be expected before mid-November on input taxes paid in advance and the integrated GST levied on goods they imported. By their reckoning, as much as ₹65,000 crore of working capital will get blocked, cramping their ability to ramp up capacity and raw material procurement in time for festive season orders from around the world. Terming these as ‘wild’ estimates, the government has asserted that many exporters’ funds were blocked for five-six months even before the GST, even as it said a solution to speed up refunds is being worked out. Those producing only for the domestic market are no better off. Therefore, expectations of a rebound in manufacturing activity may be misplaced. Moreover, in contrast to the ₹95,000-crore GST collections recorded so far for July, about ₹65,000 crore has been claimed as transitional credit (that is, taxes paid on stock purchased before the GST). On Friday, the government clarified this is not ‘incredibly high’ as firms had outstanding credits of ₹1.27 lakh crore for central excise and service tax levies on June 30. Though the deadline to file the relevant return has been extended to October 31, initially only those who filed by September 28 were to be allowed to revise their credit claims. While revisions will be enabled from mid-October, the tax department is already examining some of these credit claims, triggering unease among firms. Several revisions in deadlines, tax and cess rates, rules, clarifications and tweaks later, the GST regime is turning out to be neither simple nor friendly for taxpayers.

IMPORTANT WORDS FROM ARTICLE & THEIR MEANING

1) Stumble (noun) (ठोकर) - es-tumbleMeaning - trip or momentarily lose one's balance; almost fall.
Synonyms -   fall, collapse, foundering.
Antonyms -  surge , peak , succeeding
Example - Her foot caught in thnge rug and she stumbled.

2) Reckoning (noun) – (गणना) - rek-on-ing

Meaning -  the action or process of calculating or estimating something.
Synonyms - calculation, estimation; evaluation
Antonyms - avoid , reprieve
Example - By my reckoning, this short cut will save us five miles to our destination.

3)Cramp (verb)   (बाधित) -  crampMeaning -  inhibit the development of something
Synonyms - hinder, impede
Antonyms- ease , allow , freedom
Example -  Worry and lack of money cramp the lives of the unemployed.

4) Procurement (noun) – (प्राप्ति) - pro-kure-mentMeaning -  the action of obtaining or procuring something.
Synonyms - acquistion , purchase , obtainment
Antonyms - sale , give
Example - Russia was cutting procurement of new weapons 'by about 80 per cent', he said.

5) Tweak (noun) (फेरबदल) - tve-kMeaning - to adjust something to make it better
Synonyms- adjustment, modification, alteration.
Example - In order to make your descriptive essay more impressive , you just just need to tweak the last paragraph and then it's done.

6) Rebound  (noun)(कमजोर बिंदु) - re-boundMeaning - an increase in something (value, amount) after a decline , recover in value, amount, or strength after a decrease or decline.
Synonyms - recoil , bounce back
Antonyms - worsen , weaken , decline
Example - Happiness, I have discovered, is nearly always a rebound from hard work.

7)Better off (phrase) (किस्मत का धनी) - better-offMeaning - in a more desirable/advantageous situation.
Synonyms - prosperous , fortunate , rich
Antonyms - depress , decline , unfortunate
Example - Women will be better off under the new law for their safety.

8)Ramp up (phrasal verb)   (बढ़ाना) - ramp-upMeaning -  increase something.
Synonyms - develop , fortify , progess
Antonyms - drop , attenuate
Example - The company announced effective plans to ramp up production to 10 000 units per month.

8)Unease (Noun)   (असहजता) - un-eazMeaning - a sense of anxiety or nervousness
Synonyms -  fright, fearfulness, anxiety/panic.
Antonyms - ease , comfort , pleasure
Example - You may feel a bit of unease before your first interview with a potential employer, but try to make it so your nervousness isn’t obvious.

10)Overhaul (noun) (निरीक्षण करना) - over-hawlMeaning - a thorough examination of machinery or a system, with repairs or changes made if necessary.
Synonyms -  revamp, recondition.
Example -  The new tax system has undergone a complete overhaul.

11) Impasse (noun)  (गतिरोध) - 
Meaning - a situation that prevents advancement
Synonyms -  stalemate, deadlock, stand-off.Antonyms - breakthrough , advance
Example - Because of the impasse between workers and management, the factory has been closed for two weeks.

Assignment - 

A) Now try to answer the following questions based on this article :

1. Why the author thinks that expectations of a rebound in manufacturing activity may be misplaced ?
2. What are the shortcomings of GST Network as mentioned in the passage?

Check your vocabulary. 

B) We have given below some words from the same article. Try to make sentences with these words in the comment section which will be reviewed by us. 

• Critically
• Assurance
• Deadline
• Trigger