Why the GST Tech Platform Needs to Be Stabilised?

Goods and Services Tax (GST) completed three years on July 1, 2020, it was introduced to keep the taxation system simple and beneficial for taxpayers. It brings various changes and also the compliance rate has been improved. But still, there is a major issue Central as well as the State government are complaining about, and the issue is “the shortfall in revenues”.

As per reports, the actual revenue in FY20 from the GST The collection of Goods and Services Tax (GST) for June 2020 has seen a downfall as compared to that in June 2019. The GST collected for June, amounted to ₹ 90,917 Crore. Read more of the central government was 24% lower than the budget estimated and 18% lower than the revised estimate. For FY21 the revenue from taxes was estimated at 6.9 lakh crore, and it needs a 40% boost to reach there. Yes, COVID-19 also causes harm to revenue collection but even considering the previous year’s revenue there is a straightforward loss of Rs. 3 lakh crore from the expected budget for FY21.

After seeing a lower collection of Rs 32,294 crore in April, and Rs 62,009 crore in May, a spike in the collection of June 2020 has been reported, the collection reached at Rs 90,917 crore in this month. But there are a few valid reasons behind this spike, it can be either due to lifting of the lockdown or due to delayed filing of GST returns Get to know the online procedure of filing GST return in India. Also, we provide each and every GST form according to the taxpayers’ category. Read more (as per the relaxed time schedule).

States will get compensation till FY22, but they are worried about revenue loss after expiring this agreement. And when the finance minister, in her budget speech, has categorically stated, “Hereinafter, transfers to the (compensation) fund would be limited only to the collection by way of GST compensation cess”, then this matter becomes more serious.

Many experts are thinking about Reforming the rate structure of GST Grab the information of revised GST slab rates on consumer products in India, Although GST council finalized the slab rates like 5%, 12%, 18% and 28%, which can be helpful but carrying that out in the present situation can be hard. Additionally, to pass any reform of the structure need 75% of the votes in the GST Council.

Serious reform of the tax system is possible if an increase in revenue collection is promised, the reason for the low revenue through tax can be its poor compliances of the tax. Another major reason is the lack of stability in the technology platform even after three years.

The GST council meeting Get to know about GST (Goods and Services Tax) council 1st to 40th meeting updates and decisions taken by members. We have covered 1st meeting to last meeting decisions has to take this issue on a priority basis. There are some updates that the council has discussed the problem with the service provider but there is no update about the solutions or when the taxpayers will have the benefit of a modern-day technology interface. It is only when we have sufficient revenue that all the improvements in the structure of taxation become possible.