Minister Piyush Goyal struck a right note for the times when he asked the
Chartered Accountants to actively participate in the successful implementation
of the Goods and Services Tax (GST) ensuring that their clients do not
overcharge customers and made a request to them not to evade tax nor help their
clients evade tax.
speaking to members of the Bombay Chartered Accountants’ Society that was
celebrating its 69th foundation day. He gave a soft warning against tax
evasion, suggesting that they should not evade tax and nor should help their
clients evade tax as many of them were seen helping their clients launder
undisclosed cash after the announcement of the demonetization.
“It is incumbent on traders, businessmen, manufacturers, every component of the
value chain to ensure that the correct pricing is carried forward and the input
credit is given correctly. We (CAs) as a community have to ensure that the
customers are not jilted and the correct pricing is right sized at the input
level,” Goyal, a CA himself by qualification, said.
Referring to GST as the “biggest transformation that our nation has seen in our
70 years of independence”, he said that it was redeeming for the CA community
that it was introduced on July 1, which is also celebrated as the ‘CA
“International experience shows that inflation tends to show its ugly head in
the first couple of quarters after the GST implementation. When it comes to
inflation, we all can play a role. It is incumbent on traders, businessmen,
manufacturers - every component of the value chain - to ensure that the correct
pricing is carried forward and the input credit is given correctly,” Goyal
India introduced GST from July 1, replacing multiple state and central taxes
with this simplified tax. The new tax aims to reduce the prices of goods as it
removes double taxation and allows seamless tax credit on inputs.
“I request you not to evade taxes yourself and not to help your clients evade
tax. Every time you do that, remember you are depriving someone poor and needy
of that resource,” the minister warned CAs.
Taking a jibe at chartered accountants who are increasing their fees for
GST-related services, he said: “CAs have started jacking up their fees, I
thought it will be the other way. But I think it will be important that we
advise our clients to give the correct input as the goods and services move
from one part of the value chain to another. Otherwise what we are trying to save
the system from — harassment and tax terrorism —will once again show its ugly