S Ravi, Former BSE Chairman Deliberates on Raising GST Arrest Threshold and Its Impact on Taxpayers

S Ravi BSE, the former Chairman, recently engaged in a compelling discussion with Tarun Nangia and other industry experts, shedding light on the proposal to raise the GST arrest threshold from 2 crore to 3 crore and its potential ramifications for taxpayers. Ravi highlighted the industry’s persistent demand for this adjustment, citing widespread apprehension regarding potential arrests, which prompted the issue to be escalated to the finance ministry. While the proposed increase from 2 to 3 crore is considered modest, Ravi emphasized the industry’s desire for more substantial adjustments.

Former BSE Chairman, Sethurathnam Ravi

Expressing his insights, Sethurathnam Ravi delineated the government’s delicate balance between supporting law-abiding taxpayers and combating fraudulent tax practices, which have reached alarming proportions. He acknowledged the significant concerns surrounding fraudulent tax invoicing and the formidable challenge of maintaining a fair tax regime. Ravi underscored the calibrated nature of the proposed rise, noting the government’s cautious approach and the introduction of E-invoicing to enhance tax transparency.

Ravi underscored the importance of taxation while emphasizing the need to mitigate hysteria and panic among taxpayers. He advocated for systemic improvements in tax administration, advocating for fair and transparent practices that prioritize dialogue and consultation over arbitrary enforcement measures. S Ravi BSE, the former Chairman proposed a shift towards faceless engagement with taxpayers, fostering mutual understanding and collaboration to resolve interpretation disputes and minimize disruptions to stakeholders.

Central to Ravi’s discourse was the imperative of providing taxpayers with a fair and transparent process, grounded in principles of equity and accountability. He emphasized the necessity of instituting a collective decision-making framework for issuing notices, incorporating legal opinion and committee oversight to enhance procedural fairness and accountability. Ravi underscored the systemic nature of the issue, urging officials to reevaluate the standard operating procedures (SOPs) governing notice issuance to promote consistency and procedural integrity.