One year after its implementation, the Goods and Services Tax system is functioning well and has resulted in increased tax compliance across the country, according to officials in the GST Network and tax analysts.
“We are happy to state that the GST system is functioning well with around a crore returns being filed seamlessly every month,” Chairman of the GST Network A.B. Pandey said in a note.
“GST has clocked an average revenue collection of approximately ₹90,000 crore a month in the first year, with the same crossing ₹1 lakh crore in April. As many as 12 crore returns have been filed till date and 380 crore invoices processed. The taxpayer is now better informed and the errors in filing have also reduced substantially,” he said.
More new entrants
A total of 1,12,15,693 taxpayers have so far registered with the GST system, of which 48,38,726 are new entrants into the tax net, Mr. Pandey added.
That said, some tax analysts and GST Suvidha Providers say there is still much to do for GST to be an unequivocal success.
“The simplification of GST as a step towards making compliance simpler is still some distance away and one expects decisions to this effect to move faster,” said Bharat Goenka, Managing Director of Tally Solutions, a GST Suvidha Provider.
On a sector-wise basis, an analysis by PwC for The Hindu shows that there are still some persistent problems — including the passing on of the benefits of input tax credits, the confusion surrounding TDS and TCS, some elements being kept out of GST— that still affect several growing sectors.
For example, according to analysis done by Sumit Lunker, Kartik Dedhia and Abhijit Saha, all part of the Indirect Tax team at PwC, in the FMCG and pharma sectors, “companies that need to pass on the GST benefits to the end consumers and various companies have been issued notices from anti-profiteering authorities”. Another issue they point out is that aviation turbine fuel is still outside the purview of GST which has increased costs for the aviation sector.
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source : hindu news