Improvement in the economy –


According to Vivek Johri, chairman of the Central Board of Indirect Taxes and Customs (CBIC), the economy is showing improvement, which is the reason why the GST collection figures are continuously increasing. Johri said, “This time there has been an increase in GST collection for another reason and that is promptness in tax compliance. This thing is also visible in the return filing, which has reached 80-95 percent this time. Before GST was implemented, the return filing rate used to be 65-70 per cent. Asked how the central and state governments managed to pull off this feat, Johri attributed it to the technology being used to identify people who are reluctant to file returns. “We have laid down a standard operating procedure which is followed by both the Center and the states. For example, if the last date for filing returns is the 20th, then the very next day we come to know about those who have not filed returns. For the remaining days of that month, we keep telling such people time and again to file the return at the earliest. We call them, remind them again and again that they have not filed returns. CBIC is continuously using data analytics to increase GST collection. This has not only increased the indirect tax collection, but also increased the direct tax collection. Johri said the tax department has used data analytics to crack down on taxpayers who cheat by showing fake bills and setting up shell companies. Data analytics has also helped the department in keeping the books of accounts clean. He said that this has also helped in changing the strange behavior of non-tax payers. Johri said that such taxpayers go into hiding for a few months and then suddenly become active. He said, ‘We also understand his game. We have made it difficult for them to avoid tax liability by introducing the system of filing successive returns. Under the system of sequential return filing, if a taxpayer does not file GSTR 3B for a month, he is barred from filing GSTR 1 for the next month. Johri said that whenever any major tax evasion is detected by the GST authorities, the information related to it is shared with the Income Tax Department under a special arrangement. Johri said, “It is natural that if GST is not paid, income tax will also not be paid and sometimes other cases of tax evasion also come to the fore. In that case, we share the information with law enforcement agencies for further investigation. All information related to major cases related to tax evasion is shared under a standard framework.

Goods and Services Tax (GST) has completed six years since it came into existence. At least Rs 1.5 lakh crore is coming to the exchequer every month from GST. This seems to be a new and continuing cycle. When this new indirect tax regime came into force on July 1, 2017, during the first 20 months, less than Rs 1 lakh crore was coming to the exchequer as revenue every month. GST is now generating more than Rs 1.5 lakh crore in revenue each month, while major sources of revenue for the government, petroleum, alcohol, a part of real estate and electricity are still outside the GST regime.

Based on the above facts, the Chairman of the Central Board of Indirect Taxes and Customs, Vivek Johri is claiming improvement in the economy and his claim seems to be justified. But there can be further increase in revenue if real estate, electricity and petroleum are also taken under GST by taking the states into confidence. Even today there is a dispute between the state governments due to non-receipt of their proportionate amount from the central government on time. That’s why it is necessary for the central government to win the trust of the states by removing the difficulties they are facing regarding GST keeping the interest of the states in front. The general public is demanding that the rates of GST should not be more than two and the system should also be simplified.

Realizing that paying tax is necessary for the development of the country, the general public also wants to pay tax, but due to tax rates and technical difficulties, a class considers it better to keep itself away from the system, due to which it becomes tax evasion. Is. The central government needs to consider simplifying the rates and technical aspects of GST. Simplification will further increase revenue.

– Irwin Khanna (Chief Editor, Dainik Uttam Hindu)

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