Rahul Mehta Gandhinagar LsCandidate

STAS2
.
I have proposed STAS ( = Separate Tax Account System) to solve MTP ( = Missing Trader Problem) in GST
.
In STAS , there is one problem (yes, still one problem !!).
.
Say seller S has sold goods of Rs 1000 to buyers B1 and B2 each .
.
Say B1 pays Rs 1000 + Rs 200 GST. And B1 puts Rs 200 into STAS account of S.
.
Now what if S uses that Rs 200 to pay GST of B2 and B1's GST remains unpaid? Govt can chase S and B2. But Govt can also pull collars of B1 and say "see , you did give Rs 200 Tax money to S, and it did go into Govt treasure, but that money got labeled as inout credit of B2 and not B1. So pls pay again. " !!!
.
SOLUTION?
.
---
.
Solution I propose is STAS2.
.
STAS2 is one level above STAS.
.
In STAS2, when buyer B1 buys goods from seller S, for say Rs 1000 + Rs 200 GST , B1 can write a STAS2 cheque of Rs 200,
.
So Rs 200 will go into STAS2 account of S
.
In STAS2, only Govt can make outward transfers.!!!
.
Here, the Govt Officer (or Govt's automated system or both) will take that Rs 200 money and mark GST of B1 as fully paid,. And if seller S as excess deposits, then Govt officer or automated system will refund S.
.
So in STAS2, buyers B1, B2 etc direct pay to Govt via STAS2 account of seller S. And if excess payments have come in STAS2 accounts, then Govt will issue refund to seller S
.
So STAS2 is safer for A. But STAS2 increases workload on Govt
.
So Govt has choice -- if Govt wants safer system, it can take STAS2 and bear the workload. And if Govt wants less safe system, then Govt can go for STAS.