New Delhi [India], Aug.10 : The All India Tax Advocates' Forum (AITAF) has urged Finance Minister Arun Jaitley to make necessary changes in new GST procedural rules relating to the inter-state movement of materials under "Bill to Ship to" transaction-popularly known as transit sale transaction-to protect confidentiality of business transaction.
"Protection of confidentiality of business transaction is essential for injecting competitiveness in business activities.
Unless the confidentiality is protected the competitiveness in trading will not take place and business man's right guaranteed under articles 19(1)(g) of the constitution of India, not absolute, will be impugned to a great extent.It is the competitiveness which promotes trading and business activities," AITAF President M K Gandhi said in a statement issued here.
Under the new GST procedural rules relating to "Bill to Ship to" transaction there is no protection of confidentiality of business transactions.
This is causing concern to traders engaged in business involving interstate movement of materials, Gandhi-a noted tax consultant said.
Under the erstwhile provisions under Central Excise and Central Sale Tax (CST) Rules there were in-built safeguards to protect confidentiality of business transactions.
Under the CST Act there was provision for instate sale of goods while goods were in transit. The transaction was covered under E1 or E2 sale under CST. One of the requirements under E1 transaction was that the Lorry Receipt (LR) needed to be endorsed by the buyer in the name of the consignee/ customer to facilitate further movement of goods while intransit, Gandhi explained.
"Movement of goods was done under the cover of LR and supplier's invoice copies were never shared with the customer.
Thus the confidentiality of transit sale transaction was protected," he said. "Under the IGST Act there is no such safeguard for protecting the confidentiality of transit sale transaction.
Therefore, there is an urgent need for making necessary changes in the new GST procedural rules by incorporating features of previous Central Excise and CST rules relating to transit sale transaction to protect confidentiality", Gandhi suggested.
Source: ANI
