Reducing litigation under GST requires a multi-pronged approach which involves active participation of the Government as well as taxpayers. Here are some of the steps that can help mitigate litigation under GST:
1.1 Mediation and Alternative Dispute Resolution (ADR):
ADR mechanism is a channel for resolving disputes between taxpayers and the Government without resorting to formal litigation. Mechanisms like arbitration, conciliation, and mediation etc. offer mutually agreeable and timely solutions for resolution of a dispute.
ADR mechanisms are less adversarial and can provide an amicable outcome in comparison to conventional methods of resolving disputes, thus saving time and costs for both taxpayers and tax authorities. ADR mechanism should be statutorily introduced in GST provisions. This could lead to fostering a more cooperative and collaborative approach to resolving tax conflicts.
Please refer to the below document to read the full article by Manish Mishra and Meghna Mittal, published in Assocham.
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Manish has more than 23 years of experience in Indirect taxation across Industry, Consulting and law firms.