From Rate Rationalisation to Anti Evasion

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With GST collections hitting the 1.50 lakh crore average monthly mark, the shift in policy gears is stark. As per Centre, 1.50 lakh crore monthly GST mop- up is the new normal and curbing GST evasion will further strengthen the revenue stream.

So from big rate rationalisations to GST compensation worries, the Centre’s energies are now completely focused on nabbing tax evaders and fake registrations.

Even the issue of GST slab rationalisation has taken a back seat with the GST Council maintaining a studied silence.

Instead, controlling fake registrations, fake invoices, better risk management by the GSTN, data sourcing from a greater number of third parties is the big focus now, both at the Centre and States.

As a government official said, "Aim is to detect and weed out fake dealers. For instance, we have come across 3000 PANs ( permanent account numbers ) used for creating fake dealer registrations."

Consequently, not just Aadhaar, income tax verifications against registrations are underway in a big way, but the government is also aiming to tap more third party sources, the MCA being one instance.

As per the GST law, registrations have to be verified and matched with bank accounts and refunds also are being issued only after this exercise. From July onwards taxpayers will also need to explain data mismatches between GSTR 1B and GSTR 3B.

In fact, the outcome of the recent drive by authorities to track down fake registration and invoicing is likely to be discussed in the upcoming GST council meeting on July 16. Last fiscal, approximately Rs 20,000 crore worth of GST evasion had been detected.

The industry is working closely with the GSTN and is supportive of its efforts to strengthen systems and check fake invoicing , they say "intense discussions are on" currently.

Industry Priorities —The unfinished agenda

But industry is also waiting for clarity on a host of key issues:

Like the setting up of GST Appellate Tribunals. Tax payers are still knocking at high courts doors for dispute resolutions.

Industry also wants the scope of GST amnesty scheme to be expanded to cover tax dues with a full interest and penalty waiver.

Greater engagement with industry, revive sectoral committees.

Decriminalise GST Act ; Council must do a comprehensive review and simply Act.

Provide clarity on online gaming GST rates, whether gaming or betting.

Need clarity on new age industries like cryptos; whether bitcoins are goods/services.

Pratik Jain, Partner, Pricewaterhouse said, "This is the right time for the GST council to engage with all stakeholders and undertake a comprehensive legislative/administrative review to reduce disputes and further simplify the laws. Sectoral committees can be formed to discuss and address the sector specific concerns, specifically the new age segments such as e-commerce, crypto currencies etc."

First Published:Jun 30, 2023 9:59 PM IST