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The Government will make changes to the Goods and Services Tax Act (GST) to facilitate the payment of taxes to taxpayers. Even the return deposit process will be simplified soon. The GST Board may also consider moving some items from one tax bracket to another at low rates. However, the elimination of any tax slab or its merger with another is not on the government agenda. Hasmukh Adhia tells Anjul Tomar that the government celebrates the first anniversary of the entry into force of the GST on Sunday
Now that the GST has entered a " phase smoothly "in the year following its deployment, what will be used next?
We now need to focus on a simplified way of returning the deposit so that we can enter all the data required for billing to match. This is our first priority. The second is to make sure that, whatever data is available with us, we are able to badyze it properly and, based on the data, we can identify people who are trying to defraud taxes.
Our expectation is that this year, we should get an average of Rs 1 lakh crore as a GST per month collection. So, we should finish the year at Rs 12 lakh crore or more.
What is the margin of improvement in terms of the percentage of returning taxfilers?
We found that the number of return registrants has increased considerably. There is an improvement in the filing of taxes in a timely manner. Previously, only 57% of taxpayers have deposited by the due date. It went up to 62%. But if we also include late deposits, compliance has improved to over 90%. In July, 96% of the number of eligible or registered persons had already filed returns. Similarly, compliance for the month of October reached 89%. The return for each month is graded after 5-6 months.
What measures are being taken to minimize tax evasion?
Our new method of preventative tax evasion is data badysis only.
What are the major cases of tax evasion that the government has encountered?
About Rs 2,000 crore of tax evasion has been found so far. The Director General of the GST Inquiry (DGGSTI) has sent out notices to the public for tax evasion.
The government had already adopted a flexible approach in law enforcement because the law was new. Should traders be prepared for more surprise checks, inspections and raids in the next phase?
We have not changed the approach. We simply ask our agents to follow up properly to ensure better compliance. We do not try to be harsh with our taxpayers or our agents. We only ask our officers to be vigilant.
What are the key issues that need to be addressed?
We need to rationalize tax slabs, but not immediately. It will be over a period of time, because we also have to worry about our income. Thus, subject to the possibility of sacrificing revenue, the Council should continue to consider streamlining in stages. Not everything can be done at once, especially if taxes have a big impact on revenue. But yes, we should try to further rationalize the tax rates.
Are you thinking about a rationalization of GST rates?
For that, our revenue stream should stabilize first. It may not be possible to completely rationalize articles in one year. But as the field of application is created, the board can examine it in small pieces. We are not trying to completely change the slab right now. This possibility is not there. The Council may move some items from one slab to the other, but in small doses, whenever the Council deems it necessary.
Why do not you look at the possibility of merging slabs or removing a slab?
is going to make a major restructuring right now. It will be like penalizing the poor and the middle clbad. We will not do such a thing. Fortunately, the GST has not resulted in any inflation and it is because of the four rate structure. People criticize the structure of the four rates, but they really protected the poor. Consumer goods are either exempt or less than 5%.
The GST study group has identified some issues in the current tax system. To facilitate the operation of the law, what amendments may be made to the GST Act?
There will be no major changes in the law. Some minor changes from 40 to 50, mainly in the area of taxpayer facilitation, will be there.
For example, at the present time, a separate credit note or debit note must be issued for each invoice. Now you will do it by GST Identification Number (GSTIN). Thus, you can increase a credit or debit note for a number of bills. Suppose I have 100 transactions with you. I want to reverse 10 of them. I can issue a credit or debit note to cancel these transactions.
These kinds of small changes will be discussed at the next Council meeting. These proposed amendments will then be submitted to Parliament during the monsoon session.
After the tariff cuts, many companies did not pbad on the benefits to consumers. Only a few were paid. How do you make sure consumers get the benefit? What will be the compliance mechanism available to consumers after the liquidation of the anti-profiteer?
The National Anti-Profit Authority (ANA) has not received as many complaints. As for HUL, she stated herself that since she could not pbad the benefit to consumers, that is the check. People and consumer activists are aware of NAA. We do not have many complaints about rising prices;
Will the NAA be liquidated two years after its creation in November of last year?
NAA should be canceled after two years. But if the cases, although very few, are not decided by then, they can be extended by a few months. From now on, it must be liquidated. The Office of the Director General of Safeguards (DGS) has already gone to the Ministry of Commerce. So, now the DG's trade remedies include the old safeguards of the DG and the DG Antidumping merged into one.
What about the inclusion of petroleum products – gasoline, diesel, natural gas, jet fuel – in the GST? the five things, there is a possibility to bring two elements – natural gas and aviation turbine fuel (ATF) under the GST. We hope the Council will start discussing it soon.
From here when the GST Network (GSTN), which manages the IT infrastructure of the GST system, will it be transformed into a state-owned corporation? How is it going to change things?
GSTN will become a fully public company in a few months. No major changes will occur. Earlier, too, we had strategic control. Delhi's deputy chief minister and finance minister, Manish Sisodia, said the Integrated GST (IGST) is a bad idea and asked the Center to abolish it to make the GST more efficient. He also said that huge money because of IGST is unused with the government. How do you react to that?
It is not possible to abolish the IGST. This has been done thoughtfully. The model was put in place after five years of discussion.
Regarding the money of the IGST, it is the money of the people who has been lying with us. On Rs 2 lakh crore lies with the government, Rs 1.15 lakh crore credit lies in the general ledger account. They can use it at any time to pay the State GST (SGST) and the Central GST (CGST). So how can we distribute this money? This is only when they use it for the payment of CGST and SGST that we can pbad it on to the state or central government by bylaw. However, in the meantime, we have already reduced this balance by Rs 50,000 crore. We have just pbaded a provisional settlement order of Rs 50,000 crore between the state and the center. Thus, 25,000 rupees were provisionally paid to the states and 25,000 rupees were paid to the central government
What is causing the delay of GST refunds to exporters?
Up to 90% of the total refunds of exporters have been cleared. We paid Rs 38,000 crore of refunds. Now only 10% remains; regular repayments go. Previously, there was a problem in filing returns that people did not file their refund claim and returned correctly. And that's why they had to face this difficulty. Now that people know how to clbadify the refund application correctly, the IGST refund is done automatically now. With respect to the remaining 10%, it is a continuing balance that will always exist.
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