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Seeking to reduce tax evasion, Finance Minister Piyush Goyal, on the eve of the end of one year of the Goods and Services Tax (GST), called on consumers to demand an invoice for each purchase. He said that it would help the government to control tax evasion and reduce the tax rate of each item by 4-5 percent.
He added that the government would create a three-digit call number for consumers to allow them to file lawsuits against errant traders or any other form of tax evasion.
Presented as the largest indirect tax reform since independence, the GST was rolled out last year on July 1.
"I want to appeal to people that they should charge a bill every time they go to buy goods.If you start asking for a bill … if there is an awareness on this, we can reduce rates by 4 to 5 percent for each item (under the GST), "said Mr. Goyal
.
If a store says it will sell at a lower price if the consumer does not require a bill, the consumer will have to file a complaint immediately, he said.
"We will soon be providing a simple three-digit number that will function as a call center where customers can complain and we will ensure the complainant's total confidentiality," said Goyal.
The effort will be to start the hotline by 15-20 days, he said. A national campaign could be launched to educate consumers on demanding bills for purchases.
"If everyone starts giving bills, then the competition will be about quality and customer service and not about the ability to deceive the system," said Goyal
.
He added that the government wants to reduce the burden of taxation on consumers, but that revenues must increase and that state support is also needed to reduce rates where it is essential.
With the formalization of the economy, the government will have more leeway to reduce rates, he said.
Goyal also badured small businesses if they are having problems, so they can write to him and that will be solved.
He stated that amendments would be introduced to the GST Act during the monsoon session to increase the threshold of the composition system compared to the current 10 million Rs.
The Council of the GST had decided last year to increase the threshold to 15 million rupees and also decided to amend the law to increase the statutory threshold to 20 million rupees.
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