Goods and Service Tax is well ahead of many other significant issues currently running through the ministry and Parliament business and one thing industry expert are sure about is that GST will bring along some benefits including tax collection growth on the sidelines of implementation. The industry experts are sure to say this point as they have elongated the fact that after the implementation of GST, the tax regime not only will capture data of the companies paying taxes, it will also analyze the income tax data of all the stakeholders, investors, owners of the organization.
This implies that each and every party in the chain must get registered in the GST system including production houses, wholesalers, retailers, agents and business unit entities as the GST system is mandated to register them collectively. The factor is also mentioned that after the registration, the GST system will easily capture every detail of transactions being carried out within the business units thereby ascertaining the actual data and revenue being crossed over. This will make the task of tax officials very brisk to dig out all the past sources of income tax transactions with the income tax department, as the top official from the department itself confirmed that “GST will not only impact the indirect tax collection but also the income tax collections as this is one tool where the tax officials will have a data to calculate incomes of people, against the income taxes paid by them.”
Overall the tax department has gained the knowledge of frauds being committed by the business units, as the first one is said to be unilateral in which invoicing is done with two aspects i.e. over invoicing and under invoicing as the transactions is between one or two parties itself while coming to the bilateral fraud, it is said to be quite tough to detect under this scheme as it has a complex structure.
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