Speaking at an event to mark GST Network Foundation Day, Subramanian asserted that e-way bill and matching of invoices were the new pillars of Indian Economy. They would definitely increase tax compliance and revenue collection. He also predicted that data compiled by the GSTN Network can turn out to be economic gold for India. Large-scale or Big Tax Data powered by the prowess of GSTN can be used to develop real-time statistical indicators. These statistical indicators will render better insights into the economy, formal sector employment and exports. He further added that India has over the years focussed on consumption-driven estimates. The GST data will enable experts to predict more accurate GDP rates based on demand-side data.
There has been a steady increase in the number of registered taxpayers. Since the GST was implemented, 1.05 crore businesses have registered on the portal. On an average, GST ensures revenue generation to the range of Rs 80,000 – 90,000 crore.
The GSTN network is still in its teething stage. The prime concerns of the GSTN Network presently lie in ensuring IT and operational functionalities. With time, as the compliance numbers increase, the role of GSTN will also evolve and merge with different verticals of Indian Economy. The benefits from (invoice) matching and the e-way bill will begin to show up sooner than later. Mr Subramanian also added that GSTN is an epitome of modern day public-private partnership which could facilitate bold decision making.
Within a few months, the government would have high-frequency numbers on the economy. Data can give insights once proper algorithms and tools are available. However, it would be interesting to see whether the state departments use third party or in-house services to gain such important insights on the Indian Economy. The GSTN Network, which was touted to be the IT backbone that would power India’s second tryst with destiny, has had its fair share of technical and operational glitches. The vision of Mr Arvind Subramanian is without doubt commendable. But we must remember one important thing: The true power of Democracy is determined by the rights and freedoms exercised by its citizens. But with the changing digital landscape. the true power of the Digital Indian democracy will be strongly teetered with the privacy and data security of its citizens.
