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Is SSGC a GST extorting tool for CBR

RECORDER REPORT

KARACHI: The Sui Southern Gas Company (SSGC) seems to have become a leverage of extorting GST for the CBR as the company has billed its consumers on a highly inflated hypothetical basis which carries an equally high portion of GST.

The billing mode it adopted for the month of December 1999 suggests that the GST collection would amount to around Rs 900 million in a single month.

A random survey conducted by Business Recorder reveals that the SSGC's bills for the month of December last, have made an unusual deviation to 'average basis' that is contrary to its track record.

The consumers, whose average monthly consumption of gas comes to Rs 160, have been issued bills of the amount of over Rs 500. Another bill, issued to a domestic consumer, carries an amount of over Rs 1,600 whereas the monthly consumption of the consumer is around Rs 200.

Interestingly, these inflated bills are liable to 15 percent GST. Thus the amount under the head of GST for the two bills stood at Rs 60 and Rs 207 respectively.

This subtle billing mode can bring GST collection of Rs. 900 million in a month only, if Rs 60 is taken as a minimum GST slab and multiplied by the total clientele of SSGC which touches the mark of 1.45 million.

One may optimistically assume that the SSGC will agree to correct these bills later on, but how would it refund GST part of these bills since the company is under obligation to pass the GST collection on to its ultimate collectors, i.e. Central Board of Revenue (CBR)?