{"id":250897,"date":"2023-07-05T20:21:59","date_gmt":"2023-07-05T14:51:59","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=250897"},"modified":"2023-08-31T14:41:00","modified_gmt":"2023-08-31T09:11:00","slug":"next-steps-for-gst-administrative-and-policy-interventions-needed","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/next-steps-for-gst-administrative-and-policy-interventions-needed\/","title":{"rendered":"Next steps for GST – Administrative and policy interventions needed"},"content":{"rendered":"\n

Source<\/strong>: The post is based on an article\u00a0\u201cNext steps for GST –\u00a0Administrative and policy interventions needed<\/strong>\u201d published in Business Standard <\/strong>on\u00a05th<\/sup> July 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS 3 \u2013 Indian Economy \u2013 Fiscal Policy, Growth and Development<\/strong><\/p>\n

Relevance: <\/strong>concerns present with the GST system and measures needed to address them<\/strong><\/p>\n

News<\/strong>: After six years of implementation, the goods and services tax (GST) system seems to have stabilized, with monthly revenues of at least ~1.5 trillion.<\/p>\n

A number of interventions over the years, such as the introduction of e-way bills, the use of e-invoice and technology, have improved efficiency.<\/p>\n

However, despite the achievements of the past six years, there are still concerns present with the GST system.<\/p>\n

What are the concerns present with the GST system?<\/strong><\/h2>\n

In a recent special drive conducted by tax officials, approximately 60,000 suspicious entities were identified. After verifying 50,000 of them, it was discovered that about 25% were bogus<\/strong>.<\/p>\n

Hence, to strengthen the system, the administration is planning to introduce biometric authentication along with geo-tagging<\/strong>.<\/p>\n

The tax authorities have also found a number of instances of fake input tax credit claims<\/strong>. For example,<\/strong> GST officials in recent months have busted over 300 syndicates with estimated fake input tax credit claims of about ~25,000 crore.<\/p>\n

Hence, in this regard,<\/strong> it is important for new systems or changes in tax administration to minimize compliance burdens <\/strong>and allow registered entities to focus on their businesses.<\/p>\n

Must Read: <\/strong>The unsung hero \u2013 After five years, it seems GST has begun to show sustained growth even as it has many weaknesses and policy challenges<\/strong><\/a><\/p>\n

What can be the way ahead?<\/strong><\/h2>\n

First,<\/strong> there is a need for strengthening supervision in a sustained manner<\/strong> to check tax evasion and fraudulent claims of input tax credit.<\/p>\n

Second, the GST Council must also make necessary interventions. For instance,<\/strong> although there has been an improvement in revenue collection in recent years, the system still falls short of the initial expectations.<\/p>\n

The estimated GST collection in 2022-23 was 6.65% of the GDP, only slightly better than the 6.3% collected in 2016-17. Also, collection may be affected when the extended compensation cess expires.<\/p>\n

Therefore, it is important that the GST Council addresses the long-pending issue of rationalising both rates and slabs.<\/strong> Reducing the number of slabs, along with adjustments in rates, will improve efficiency and collection.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on an article\u00a0\u201cNext steps for GST –\u00a0Administrative and policy interventions needed\u201d published in Business Standard on\u00a05th July 2023. Syllabus: GS 3 \u2013 Indian Economy \u2013 Fiscal Policy, Growth and Development Relevance: concerns present with the GST system and measures needed to address them News: After six years of implementation, the… Continue reading Next steps for GST – Administrative and policy interventions needed<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216,8184],"class_list":["post-250897","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/250897","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=250897"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/250897\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=250897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=250897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=250897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}