suggestion to bring in some element of honesty

I have the following to suggest to bring in some element of honesty in the governance of the democracy:

1. Make the entry point employment foolproof, without any loopholes for corrupt practice.
2. Make policy and procedure free of loopholes before announcing the same. How the taxes on sales of a product from the start at first point of sales to wholesaler, to dealer, to retailer and to the consumer are to be charged, credited to be adjusted in the sales margin (value addition to the sales margin, the difference between the purchase price and sales price). If value addition (the element of tax on sales margin in %age points) is done, ie, "set-off" value, the consumer may not mind paying the same. But the consumer has the objection of paying any VAT/GST/CGST calculated as per the Scheme of VAT but charged at maximum retail price with giving the benefit of "set-off" is objectionable but is largely in the practice. So, the procedure has to be clear to the Tax & Trade Office staff, the trade, and the consumer which must be through wide publicity. Haryana Govt implemented VAT in words and spirits.

I must give here my personal experience as example. In 2003-2005, prior to VAT implementation the chemists' trade in India as per direction of their Federating Body (AIOCT), used to overcharge in the name of Local Taxes Extra without mentioning the same in the cash memo. It means, the overcharged amount does not get remitted to the state exchequer thereby generating huge amount (thousands of crores) in black account. The government's good intention of giving relief to the sick and poor, the sales tax was chargeable at the First Point of Sales which the chemists' trade bypassed by charging consumers in the name of Local Taxes, the sales tax on MRP in addition and not mentioning the same without the sanction of any law. I filed a class complaint in the National Consumer Disputes Redressal Commission (NCDRC) for refund of this overcharge by the trade, but the NCDRC failed to appreciate the complaint and dismissed it. The VAT scheme also did not solve the problem. The case filed in 2003 was dismissed in Dec 2015. SC also did not appreciate the appeal against the order.

While the case was in progress in NCDRC, I applied for early hearing and also at one point to place the complaint before a larger bench. But the Bench was not interested as it was under the influence of an earlier Presiding Member of the Commission who wrote in one of his earlier orders on the lines that 'there was no urgency and that since the VAT was coming there would be no such complaint.'

Therefore, what I say is that the procedure for collecting the taxes on sales of whatever hue, must be crystal clear to consumers. And, the judicial bodies including such Commission must get hold of the main issues e.g. the one raised by the consumer complainant for decision. more