Join What's App Group for Pharma Jobs

GST under CAG lens: National auditor lists concerns; says full potential not achieved even after 2 years

The GST was launched on July 1, 2017 as “One Nation One Tax”and has completed two years. GST, an indirect tax was introduced as the biggest tax reforms but the GST mechanism has become susceptible to frauds.

The return mechanism in the GST system is already complex in nature and many loop holes, technical glitches are the struggles that government is facing as a challenge.

In the last two years, a total, 9,385 cases of GST frauds were reported in the last two years.

CAG report also noted that “Even as GST roll out completed two years, no process of system-validated input tax credit (ITC) system through invoice matching has been put in place”.

There are many deficiencies in the system, the major focus was highlighted that“GST tax compliance system is non-functional in absence of invoice matching and auto generation of refunds, assessments and others”.

The Minister of State for Finance Anurag Thakur told Parliament that the tax officials have disclosed and detected worth of Rs 45,682.83 crore of tax frauds under GST in the last two years of its implementation.

The government data showed that an amount worth Rs 6520.40 crore was detected in the April to June period of fiscal year 2019-20.

Read more: Risky Taxpayers to be Profiled

Author: Niranjan Reddy

Leave a Reply