THE HINDU Editorial Vocabulary- September 23, 2017- Topic 1

Tax trauma

On GST Network

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.

Vocabulary

Crack: damaged and showing lines on the surface from having split without coming apart.

Example: The old pipes were cracked and leaking

Synonyms: chipped, broken, crazed, fractured, splintered, shattered

Reiterate: say something again or a number of times, typically for emphasis or clarity.

Example: She reiterated that the administration would remain steadfast in its support

Synonyms: repeat, say again, restate, retell, recapitulate, go over

Chink: a narrow opening or crack, typically one that admits light.

Example: A chink in the curtains

Synonyms: opening, gap, space, hole, aperture, crack, fissure, crevice

Glitch: a sudden, usually temporary malfunction or irregularity of equipment.

Example: A draft version was lost in a computer glitch

Assurance: a positive declaration intended to give confidence; a promise.

Example: He gave an assurance that work would not recommence until Wednesday

Synonyms: word of honor, word, promise, pledge, vow, avowal, oath, bond

Impasse: a situation in which no progress is possible, especially because of disagreement; a deadlock.

Example: The current political impasse

Synonyms: deadlock, dead end, stalemate, standoff, standstill

Troublesome: causing difficulty or annoyance.

Example: A troublesome knee injury

Synonyms: annoying, irritating, exasperating, maddening, infuriating

Stumble: trip or momentarily lose one's balance.

Example: Her foot caught a shoe and she stumbled

Synonyms: trip over/up, lose one's balance, lose/miss one's footing

Reckon: the action or process of calculating or estimating something.

Example: Last year was not, by any reckoning, a particularly good one

Synonyms: calculation, estimation, count, computation, working out

Procurement: the action of obtaining or procuring something.

Example: Financial assistance for the procurement of legal advice

Assert: state a fact or belief confidently and forcefully.

Example: The company asserts that the cuts will not affect development

Synonyms: declare, maintain, contend, argue, state, claim, propound

Contrast: The state of being strikingly different from something else, typically something in juxtaposition or close association.

Example: The day began cold and blustery, in contrast to almost two weeks of uninterrupted sunshine

Synonyms: difference, dissimilarity, disparity, distinction, contradistinction

Relevant: closely connected or appropriate to the matter at hand.

Example: The candidate's experience is relevant to the job

Synonyms: pertinent, applicable, apposite, material, apropos, to the point

Unease: anxiety or discontent.

Example: Public unease about defense policy

Tweak: twist or pull something sharply.

Example: He tweaked the boy's ear

Synonyms: pull, jerk, tug, twist, twitch, pinch, squeeze