Letters to the editor dated March 23, 2021

This refers to ‘Managing GST’ (March 23). Essentially, the GST structure enabled widening of the taxpayer base and better tax compliance through the robust information technology infrastructure — GSTN.

The initial hiccups in uploading the relevant details in the e-way bill portal have been resolved. Also, the automatic capturing of data from invoices into returns has streamlined the process, resulting in increased tax collections. However, there are still issues relating to input tax credit claims and multiple tax slabs for various products and services that need to be resolved.

Bengaluru

Despite the progress made, there are still some gaps in the GST regime that need to be bridged, especially in terms of stringent procedures to be laid down at the time of registration itself so that the ‘bad eggs’ are eliminated at the inception stage itself.

GST evasion has been a major stumble block in the progress of the tax in India and has to be dealt with a firm hand. More stringent punitive measures will make wilful defaulters fall in line.

While GST collections are rising steadily, there’s a need to further simplify the various forms.

Bengaluru

The influx of refugees from Myanmar into the state of Mizoram fearing persecution at the hands of country’s powerful military junta has now threatened to snowball into an issue of major confrontation between the state Chief Minister Zoramthanga and the BJP-led government at the Centre. While Zoramthanga is insisting on the importance of adopting a humanitarian approach towards the refugees from Myanmar, the Centre took a decision to close down the country's borders with Myanmar. Not only does Mizoram share a 500 km long border with Myanmar, they also have shared ethnicities.

As a vibrant democracy in Asia, India cannot afford to overlook or remain insensitive to the sufferings of fleeing refugees from countries that share borders with us. India may not have been a signatory to 1951 Refugee Convention, but its well-cherished democratic credentials warrant it to have a humanitarian framework on refugees.

Sholavandan, TN

Apropos ‘Increase gap to 8 weeks to make Covishield doses more effective: Centre to States’ (March 23), although this is an expert advice based on scientific studies, it may create some confusion in the minds of those who have already taken the first dose and are prepared to get the second one on the date already prescribed; the confusion could be more in the minds of rural people, who have no easy access to public communication, but proceed solely on the guidance given by the local authorities or vaccinators.

It would, therefore be ideal, if State governments take the initiative to inform the public on this issue through authentic channels to help avoid confusion as well as augment vaccine efficacy.

Halekere Village, Karnataka

This is with reference to ‘Chalking the road ahead of a bad bank’ (March 23). There is much debate about the need for setting up a bad bank. First, for years loan recovery by banks and financial institutions has been poor. More so after loan write-offs by States became commonplace, especially during elections.

Sensing that the assets would become NPAs bankers have become wary about lending. Some big, unscrupulous borrowers don’t pay back, knowing fully well that they can exploit the loopholes in the system.

Until this is stopped, the generation of NPAs cannot be curtailed. Hence bad bank is necessary and should be a permanent feature. The RBI and the government must formulate proper rules to make the bad bank serve the purpose for which it is formed. Hence, if everything falls in line the bad bank may prove to be the right vehicle in resolving banks’ burgeoning NPAs.

Bhimavaram, AP

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