CBIC Chairman Secretly Discloses Plan for GST Revenue Buoyancy

The GST collection of April has crossed Rs 1.5 lakh cr, it is for the first time and the Rs 1 lakh cr mark for the tenth month in a row. Also, Rs 1.35 lakh crore per month is been expected to come in the same fiscal said by Central Board of Indirect Taxes and Customs (CBIC) chairman Vivek Johri.

“Johri mentioned that GST collections have been consistently higher than the GDP growth rate. There is a bounce-back in the economy, and the inflation and boil in oil prices have helped. Revenues will be under pressure on the Customs side because of rising commodity prices. Excise will take a hit because of the duty cut, Johri said while addressing a FICCI conclave.”

“But to continue revenue buoyancy, we have changed our strategy. One possible way to continue revenue stream is to rationalise the tax rates to let refunds and credits flow freely, reverse the inversions, he added.”

What Steps will the Government Take to Rectify GST collections?

CBIC chairman mentioned the government may see to rectify the revenue through the legal and administrative revisions, along with strict enforcement to cure the leakages.

“Legal changes were made to facilitate taxpayers to file their GST returns, which they could not do during the peak of COVID, and make the tax filing experience better. We have improved our systems on e-invoicing, which enables us to construct the tax-paying structure and credit system. Auto population of returns and inter-connectivity of returns has helped in fastrack credits and reduce the compliance cost for taxpayers, Johri declared.”

He also specified that a structure to provide small, medium, and large assessees would be made to assist to diminish the tax compliance load “We also went for Aadhaar authentication to ensure the credit system is not misused,”

How this will Run Behind the Risky Assessee?

Johri stated that his department exercises to make sure that the unwanted tax theft practices shall be prevented and diminished, and the risky assessee will be discovered in a lesser time.

“By implementing data triangulation with DGFT (Directorate General of Foreign Trade) and income-tax department, we have culled out risky taxpayers and have suspended their registrations. Wrongdoers and those who were gaming the system have been culled out,” Johri specified that adding as GST turns 5 years old, his department shall practice every action to diminish the system of theft and revise the GST compliance.

His council is making methods with states to eliminate the people who do wrong and unwanted things. Johri added that his department enables to find out more than 20,000 GSTNs and directed to rescue Rs 2,400 crore via purposes to eliminate the fake ITC and fake assessees.

Johri sees that making the taxpayer file the returns on prescribed time directed effective collections. “GSTR 3B filing has gone up from 73 per cent in January 2021 to 80 per cent in February 2022. And the entire exercise of revenue augmentation over the past two years has been driven by data analytics and data triangulation,”