GST Worry For State

With the Revenue Shortfall is being experienced by the State Government in a big way after the implementation of Goods and Services tax (GST), State Tax authorities are scrutinizing payment of Top Taxpayers in the State.

This exercise is being taken up to see the comparison of tax paid of top tax payers before introduction of GST with corresponding month after introduction of GST.
This will help the State Tax authorities to identify the taxpayers, who could have possibly suppressed their tax liability, said sources.
A Latest Report on GST and its impact on Revenue Generation revealed that in November 2017, it has touched 40.5 Percent shortfall, which is quite worrisome for both the State and centre.
While the Monthly Revenue to be protected @14 Percent per year, which comes to Rs.1194 Crore per Month. This much will be provided by the Union Government every month for next two years.
As GST was implemented from 1 July, Union Government is providing Rs.1194 Crore from 1 August.
During August, Rs.654 Crore was collected under GST, making 45.2 Percent shortfall, which was highest.
In September, Rs.702 was collected under GST, which was 41.2 Percent shortfall.
However in October, Rs.861 Crore was collected making shortfall only 27.9 Percent.
But in November, GST Collection experienced a huge shortfall, while Rs.710 Crore was collected making shortfall 40.5 Percent.
So the tax authorities are reviewing the situation in the state to improve revenue collection of GST.
More analysis is being done as in the Pre GST Regime due to issuance of C Forms, it was giving the State Government an idea of the goods entering the State.
Provision of C Form on GST goods has now been done away with. So another  exercise is under way comparing the value of goods for which Form C were issued to various dealers in Pre GST Period against IGST Credit Limit claimed in the corresponding period by the same dealers after GST.
Officials feel that this analysis will give an assessment if there is any suppression of information by dealers of goods being imported.
State Commercial Tax authorities are making such exercises after fall on collection of revenue under GST, which is bothering the officials.
Union Government is also concerned about the shortfall and Ministry of Finance is convening All Commercial Tax Commissioners (CCT) Conference on 9 December at New Delhi to review the collection and its improvement on GST front, said an official in Department of Finance.

eXTReMe Tracker
Powered by Catalyst IT Solutions Pvt. Ltd.