Govt revises target for GST collections again
The launch of GST or Goods & Services Tax on 1st July, 2017 has raised a wave of praise, disapproval and confusion among the masses. Time and again people have questioned the need of GST in India and whether it is good for the economy. Different economists have come up with different views regarding this tax but it is only time which will prove whether the new tax would be effective or ineffective.
Understanding GST
GST was launched as an indirect tax in India laid down under the historic Budget Speech of 28th February, 2006. It is divided into five different tax slabs which does not include products that contain petroleum, electricity and alcoholic drinks. These items are separately taxed by the state governments under the previous tax regime.
The Government revises GST collections GST has always been in news since the time of its launch. Recently, the Government of India under the leadership of Prime Minister Narendra Modi have decided to revise the GST collection targets. This is the second time after constantly missing targeted budget estimates the government has decided to revise the target. The target has been raised from Rs. 1.15 lakh crore of February to Rs. 1.25 lakh crore of March. At a sophisticated official meeting held in December the earlier target estimate was fixed at Rs 1.1 lakh crore for the following two months. The meeting was help between the senior officials of the Central Board of Direct Taxes (CBDT) and Central Board of Indirect Taxes and Customs (CBIC). The officials have put forth special efforts for field formations to fight "against wilful tax evaders or those who are using fake invoices or inflated or fake e-way bills…,".
The revenue secretary would himself review the "Weekly high-level revenue augmentation measures & efforts made" or any actions taken against fraudulent ITC seekers, identified default tax payers and targeted gamers.
Reports say that tax authorities will now make use of data analytics to find out mismatches in supply and purchase invoices. Data analytics will also help point out mismatch in return filings, added refunds availed, over invoicing, fake or enormous ITC claims, patching tax leakages, and refunds obtained under the inverted duty structure. To make sure taxes are paid on time the defaulters are reminded by sending text messages and electronic mails. Even after that the GST field formations wil make follow up and ensure timely payments.
A government official further informed that the response regarding GST Network's trial for new returns has been overwhelming. Till date (as of Jan 12) more than 363,855 new returns have been uploaded by means of the offline tool. According to the available data with Economic Times, this tool is in its trial phase from January 4th for new return filing of the taxpayers.
This tool will help ease out problems and consider feedbacks from stakeholders before implementation in April, 2020. Whatever inputs received from the trial would be utilised to improve the interface for future users. Reports reveal that already 750 inputs have been received from the industry. This step may indicate a milestone part of future success.