Pakistan GST A Comparison to EU VAT with the Focus on Abusive Practices

Abstract: ABSTRACT The paper will describe the comparative study of the GST bill 2010 of Pakistan and the EU VAT. The Bill is drafted for the purpose to introduce the modern VAT in Pakistan. The comparative study has been made to analyze the basic concept and difference of both these legal instruments. The difference between both these legislations makes the GST Bill vulnerable to the tax abuse or tax evasion. European Court of Justices has delivered many judgments regarding the tax abusive practices within the Member States of EU. These judgments of the European Court of Justice in the area of indirect taxes have been discussed in the paper. These judgments have been described in chronological order to see the development of the anti abuse principle in the Community law and how the Court combating the tax abusive practices through their judgments' orders. Some judgments of Pakistani Courts of law have been discussed to analyze, the Court’s approach and dealing with the tax fraud or evasion cases in the area of Sales Tax Act or indirect taxes.