GST: Govt to soon start matching of invoices and returns news

The government will soon start the process of matching returns and invoices under the goods and services tax (GST) as the GST Network, the IT infrastructure needed to assess tax claims on individual taxpayers under the new indirect tax system stabilises.

Under the GST system, returns filed under forms such as GSTR-1 and 2 have to be matched with the GSTR-3 to ensure that the claims made by taxpayers are correct.

As the GSTN backbone overcomes starting troubles and becomes more user friendly, tax authorities will start assessing the full scope of the reform measure, including the taxes due and taxes actually paid.

While the government’s post GST revenue position is reported to be comfortable, it is yet to realise its full potential as taxpayers either evade or understate transaction amounts.

At the same time, the government has also lined up several steps hand-hold the taxpayer and make the new tax system more user-friendly.

Under the GST system, returns filed under forms such as GSTR-1 and 2 have to be matched with the GSTR-3 to ensure that the claims made by taxpayers are correct. This process is yet to get over as the deadline for filing of returns itself has  been extended several times as taxpayers complain about technical glitches at the IT backbone – the Goods & Services Tax Network (GSTN).

The GST Council has taken several measures to ensure stability of the system and has been pressuring technology and service provider Infosys to fix the glitches.

However, revenue flow under GST is yet to stabilise despite a steady rise in the number of returns being filed every month.

Besides steps taken to smoothen the GST Network, the GST Council had, earlier this month, announced sharp cuts in rates applicable to nearly 200 items to ease the burden on both businesses and consumers.

However, total revenue collection under the goods and services tax (GST) for October 2017 (till 27 November) stood lower at Rs83,346 crore, down Rs11,785 crore compared to the Rs95,131 crore collected in the previous month.

About 5.01 million from among the 9.59 million registered taxpayers have filed GST returns for October till 26 November, figures released by the finance ministry showed.

Of the 9.59 million registered taxpayers 1.51 million are composition dealers who are required to file returns every quarter, according to the ministry release.

The total number of GSTR 3B returns filed for the return period July, August, September and October 2017 (till 26 November) stood at 5.87 million, 5.89 million,  5.73 million and 5.01 million, respectively.

Source:http://www.domain- .com/economy/general/20171129_system.html

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