The GST wing of the Central Board of Indirect Taxes and Customs (CBIC) would have issued GST show-cause notices to various tax-evading entities underpaying taxes. Under reports, the department would provide more than 20,000 notices to the defaulters.
For the concern of tax evasion in FY 2017-18, nearly 20,000 notices were issued post-scrutiny of the 34,000 assessee accounts when the GST audit stated for the first time. The tax evasion has stood out for Rs 2,000 cr. The council would be in the process of providing the notices for FY 2018-19 for 35,000 cases.
Elaborations would be anticipated on the provided notices through taxpayers, ensuring that the tax demand is there or closing the case with no demand. From the 34,000 cases, 95% of scrutiny would have been finished. Elaborations seek short payment in 50 to 60% of the cases.
The centre intends that the chosen assessees should precisely and constantly report the Input tax credit, supply details, and tax payments. The advanced analytics in indirect taxation, Directorate General of Analytics and Risk Management, GST Network, and e-way bill portal furnishes for the required data to permit the GST officers to scrutinize the assessee with a minimal interface. A backend reconciliation of the income tax was accomplished to find differences.
GST rate rationalization to rectify the average GST rate would be late to 2024. Therefore the CBIC chooses another method to increase the tax revenue collections via rectifying the compliance. The same would increase the GST scrutiny and audits so as to cure the bogus ITC claims along with tax evasion.
The average monthly GST collection was Rs 1.49 million which has been rectified in the first 7 months of the current FY 2022-23. Rs 1.23 trillion a month was the affiliated figure for the preceding FY 2021-22.
This month the counsel notified the higher GST collection rendered that the government might take up to Rs 1.5 trillion exceeding the budgeted Central GST (CGST) collections in FY 2022-23.
The state might take more revenue as compared to the additional receipts, easing the required resources to finance the programs. The GST revenue neutral rate (RNR) was around 15-15.5% prior to the start of the GST in July 2017. But 11.5% is the average current GST rate.
