“It is now a substantially thinner list than the
original one. That exercise will continue,” he assured.
“After we are able to improve the compliance levels, the
other stage of reform will begin... For example, we have
two standard rates and in the long run I do see them
merging into one. For that to happen, it will take some
reasonable time, that is when the compliance levels
start moving up,” Jaitley said.
Jaitley’s reference to the need for higher tax
compliance comes at a time when tax authorities at the
union and state levels are contemplating taking steps to
combat tax evasion, after having adopted a lenient
approach so far under the new tax regime to allow
taxpayers to get accustomed to GST.
In February, total GST receipts stood at Rs 86,318 crore,
nearly the same as the amount collected in January—Rs
86,703 crore. Punjab recorded the highest compliance in
February with over 83% of those required to file monthly
returns doing so. North-eastern states barring Tripura
and Sikkim reported less than 50% compliance during the
month.
According to Abhishek Jain, tax partner, EY India, with
the e-way bill requirement coming into force from 1
April, revenue collections are expected to get a boost.
“About 30% taxpayers registered with GST are still not
filing their returns and the government must endeavour
to make them file returns, which may further enhance the
overall GST revenue collections,” Jain said.
M.S Mani, senior director, Deloitte India said that
while the GST revenues and the number of returns filed
are gradually increasing, the tax base and revenue
numbers have not reached expected levels. “This could
lead to more enquiries and scrutiny from tax
authorities,” he said.
Source::: Live Mint,
dated 28/02/2018