The Madhya Pradesh Tax Law Bar Association and the Commercial Tax Practitioners Association have urged the state Goods and Services Tax (GST) department to introduce a ‘Deemed Tax Assessment Scheme’ for the tax assessment of pending cases for taxpayers dealing in notified goods like petrol-diesel under the VAT Act for the assessment year 2023-24.
Over 6,500 registered taxpayers’ tax assessments for the year 2023-24 are pending in the state, which must be resolved by or before 31 Dec 2025. Completion of assessment within the timeframe looks difficult, said the body of tax professionals urging for a deemed tax assessment scheme.
Even after the implementation of GST, certain notified items like petrol, diesel, alcohol and natural gas remain outside the GST framework, and are still taxed under VAT regulations
President of the MP Tax Law Bar Association said, “The Deemed Assessment scheme is a voluntary tax assessment plan, where the taxpayer is responsible for self-assessing and depositing the tax due on their transactions. It was also introduced by the state govt for the previous years 2021-22 and 2022-23. This year, over 6,500 registered taxpayers’ tax assessments for the year 2023-24 are pending, which looks difficult to clear within the given timeframe of 31 Dec.”
The memorandum given by the tax body to the SGST department said that the state govt has full control over imposing taxes on items like petrol and diesel, as well as their purchase, sale and pricing. As a result, VAT tax is collected in full by petrol-diesel producing companies from pump operators at the time of purchase, based on the retail selling price (the price at which they are sold from petrol pumps), ensuring no possibility of revenue loss or tax evasion of any kind.
Source #TOI
