OASIS : On-line Application & Scrutiny of Inter-State transactions

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Registration Name : eINDIA2011/AN/136
Project Category : eGov::Best Government to Business Initiative of the Year
Project Name : OASIS (On-line Application & Scrutiny of Inter-State transactions)

Details of Applicant :
Name : Patel Haribhai
Address : Rajya Kar Bhavan, Ashram Road, Near Times of India Opp. Old Reserve Bank of India
City : Ahmedabad
State : Gujarat
Country : INDIA
Zip Code : 380009

Details of Project/Implementing Agency :
Name of Organisation : Commissioner, Commercial Tax, Govt of Gujarat
Address : Rajya Kar Bhavan, Ashram Road,,Near Times of India,Opp Old Reserve Bank of India
City : Ahmedabad
State : Gujarat
Country : INDIA
Zip Code : 380009
Name of the head of Organisation : Mr H V Patel, IAS
Website : www.commercialtax.gujarat.gov.in

Brief description of the programme/project/Initiative :
Statutory Form C (for inter-state purchases), Form H (for purchases in the course of export) and Form F (for branch transfer / consignment / Stock transfer) under the Central Sales tax Act, 1956 (CST) are very important for the tax payers as they can buy at zero / reduced rate of tax. These forms are to be obtained from the Commercial Tax offices only. Such forms are not allowed to be sold in the market. The process of issuing forms was manual. Rate of tax at present for purchases against C form is 2%, else tax payer has to pay either 5% or 15%. There is no tax for purchases / procurement of goods against form H and F.

Why was the project started :
Project was started to facilitate tax payers so that they can get forms 24×7 independent of place.

Objective : Improving the quality of services to the taxpayer by simplifying administrative procedures, Bring down cost of compliance, Efficient and transparent commercial tax administration, Provide better quality of information for decision making, Strengthening internal audit and control, Increase levels of Automation & Integration, Secure Delivery of Statutory Forms
Target group : 2.45 lakh tax payers, 4000 tax administrators, 12000 tax practitioners, etc.
Geographical reach : 103 units of the Commercial Tax, State Government, tax practioners and 4.06 lakh tax payers across the State
Date from which the project became operational : 17 August 2011
Is the Project still operational : YES

10 points that make the programme/project innovative?

  1.  The most innovative use is that of Digital Certificate. The department has bought DSC.
  2.  Every tax payer is not required to buy DSC.
  3.  Further, we have used bar-code also, which is uniquely          printed on every form.
  4.  Printing can be done by the tax payer at his end on plain paper of A4 size
  5.  The process for obtaining forms has become very simple and the number of steps has been brought to the necessity of filing CST e-return only
  6.  There is no separate application or request. Tax payer is not required to come to the VAT office.
  7.  Tax payer has not to pay any fee for obtaining forms.
  8.  There is no human intervention. However there are some validations, entirely taken care-of by the system
  9.  Through this it is not possible to edit the contents of the Statutory forms.
  10. There are no bottlenecks now.

List the 5 achievements of the programme/project?

  1.  Number of persons engaged in issuing statutory forms has been brought to 27 from 300 wef 1.7.2008 in the first phase and then to 7 from 17.08.2011
  2.  Forms issued in 24 to 36 days earlier can now be issued within 24 to 36 hours. Cost of compliance and cost of collection have come down.
  3.  Transparency has increased. Revenue leakages have decreased. Misuse of forms and frauds have been eliminated.
  4.  So far, 35.10 lakh forms have been issued. Data has been shared with other states for cross verification, resulting into control on inter-state transactions. Data co-relation and data mining has become possible.
  5.  Saving of about Rs 1.25 crore towards cost of printing stationery and postage expenses

List the 5 key challenges faced while implementing the programme/project/initiative :

  1. These forms were to be obtained from the Commercial Tax offices only. Such forms are not allowed to be sold in the market. The process of issuing forms was manual. Rate of tax at present for purchases against C form is 2%, else tax payer has to pay either 5% or 15%. There is no tax for purchases / procurement of goods against form H and F.
  2.  Paper based, Multi-stage scrutiny by Clerk, Inspector and Officer delayed issuance of forms considerably and consumed lot of resources
  3.  Facilitating the tax payers in meeting their obligations was not possible.
  4.  Transparency and self- compliance levels were low.
  5.  Thorough review of all transactions done by the entity and identification of suppressed information was difficult, leading to revenue leakages. Difficulties in data collection, data sharing with other States, merging.

List the 5 points how can the programme serve as a model that can be replicated or adapted by others?

  1.  The Central Sales Tax Act, 1956 (CST) framed by Govt of India and rules as well as formats of the and procedures and formats for issue of forms are common across the country. Export of one State is the import of other. So, it is easy to replicate this program in other States.
  2.  There are about 35 lakh registered tax payers under CST. It will be a great service to them.
  3.  It will help increase the transparency and save time and resources.
  4.  It will be possible to confirm the inter- state transactions electronically (de-mating) if other States also adopt this model of issuing forms.
  5.  There will be less revenue leakages, reduction in frauds, dealys in assessments will be eliminated, audit paras of CAG and litigations minimised, if forms are issued by all the States in this manner.

List 5 points to elaborate on the scalability of the programme/project/initiative :

  1.  This application can be scaled to go for electronic confirmation of inter-state transactions, i.e. de-mat of C, F and H forms.
  2.  It can be amended so that existence of seller in other State can be checked by the system before approving and generating forms for the buyer.
  3.  The system can be best suited for inter- state model of Goods and Service Tax (GST) proposed to be introduced in India shortly.
  4.  It will be possible to verify Invoice details of inter- state transactions, branch transfer, stock transfer, consignment and export.
  5.  Data sharing with other tax authorities like Customs, Excise and CBDT can be done and tracking of movement of goods through Railways and Ports can be done by data exchange.
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