Effective use of the new technology and tight compliances on the ITC by taxmen is not only assisted you to ensure the increased compliance but indeed results in a constant rise in the GST collections on a month-on-month (MoM) grounds.
As per CBIC on the scrutiny of returns and the reduction in the e-invoicing limit of Rs 20 cr, the collections only seem to rectify in the subsequent months.
Gross GST collection for April 2022 attains an all-time high of Rs 1.68 lakh crore, hence crossing the March collection of Rs 1.43 lakh crore by over 25,000 crores, showing a strong recovery in the economic activity even the economic headwinds resulting from the Russian military action in Ukraine.
“The record collection is in the backdrop of the commendable usage of technology in compliances by the government. Also, the usage of analytics has helped too. It is interesting to note that the growth is across most states, the steady growth over the recent collection of Rs 135,000 crore average a month, reflects a stabilisation of the GST collection and growth as well,”
A rise in the GST rates relies on all the major states notifying the rise varying from 9% to 25%, GST returns furnishing arriving at 1.06 cr, and the GST e-way bill generation at 7.7 cr.
“While the GST collections in respect of March have always been high, the record collection reported is on account of multiple favorable factors, including the recent changes on permitting input tax credits only upon timely compliance by the vendors,” said MS Mani, partner, Deloitte India.
“The impact of the continuing focus on ensuring timely compliance by all GST registrants by restricting the input tax credits of the buyers together with enhanced analytics to detect evasion has also contributed significantly to the all-time high collections, Mani mentioned.”
The tax council motivated the assessee to furnish the returns in time to make the easier compliance. The tighter enforcement action opted with respect to the errant assessee revealed on the data analytics and artificial intelligence (AI).
Vertical Incline Demonetisation Outcome Under GST
The excellent GST numbers were part of the rise in the tax collections. The same was not a hurried development but the sum of opted initiatives in the former 2 years. For example, the impact of the initiatives like demonetization in 2016 and GST in the following year.
“Now, both these big initiatives have forced a lot of individuals and companies to register for income tax as well. Like, if you are paying GST, you also need an income tax registration. So, steps like GST have also had a cascading impact on income tax collections. Similarly, post-demonetisation, the number of income tax returns filed increased suddenly. So, all these measures are resulting in improved compliance, observed Neeru Ahuja, partner, Deloitte India.”
Experts while drawing the improvements by these processes, suggested the need to balance these revenue rise measures with the ease of doing the business towards assessee. Various firms deal with numerous audits across states. introduction of some standard operating procedures (SOPs) to address the problems will ensure that true assessees were not forced unnecessarily.
