The roll-out of GST has unified the multiple central and state taxes on goods and services to a great extent and made credit for input taxes available through the value chain, but hasn’t simplified the tax compliance regime while the experience so far has also been that of slowdown in tax revenue growth, the Comptroller and Auditor General (CAG) said.
The roll-out of GST has unified the multiple central and state taxes on goods and services to a great extent and made credit for input taxes available through the value chain, but hasn’t simplified the tax compliance regime while the experience so far has also been that of slowdown in tax revenue growth, the Comptroller and Auditor General (CAG) said. “The system of payment and settlement of tax that was envisaged for GST was based on one hundred per cent invoice-matching and availment of input tax credit (ITC), as well as settlement of I-GST on the basis of invoice-matching. Neither is possible as of now, as an invoice-matching system has not kicked-in,” the top auditor said in a report tabled in Parliament on Tuesday.
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The CAG also pointed out that the Centre’s revenue from taxes on goods and services subsumed in GST registered a 10% decline in 2017018 compared to the previous year. GST came into effect from July 2017. So, the overall growth of indirect taxes collected by the Centre slowed from 21.3% in 2016017 to 5.8% in 20170-18, the auditor noted (in 2018-19, the growth was even lower at 2.9%).
Source: Financial Express
