The GST collections fall below Rs 1 lakh crore in June
NEW DELHI: Tax on goods and services ( GST ) collections fell below Rs 1 lakh crore in June for the first time in the current fiscal in what is considered an impact of slow demand in several sectors, and tax advisers also blame the evasion of the fall in the sweep .
The numbers, published on the second anniversary of the indirect tax measure of reform, coincided with a warning from the government to the evaders, especially those who generate false invoices to make fraudulent claims. The threat of false invoices must be verified, since it affects honest taxpayers and causes a loss of revenue to the government. Imaandaar traders are bair nahin, fake invoice waalon ki khair nahin (we have nothing against honest traders, but there will be no peace for those who generate false invoices), junior to finance Minister Anurag Thakur said at the GST Day event.
Expect an increase in the audit and scrutiny in the coming months
With the use of technology, the government has detected thousands of merchants, many of whom were using ghost companies to generate false invoices and claim tax credits and reimbursements. Sales of durable goods and automobiles, as well as consumer goods, have been hit in recent months, which, according to analysts, is reflected in the fiscal data.
Although tax collections had dipped in June, Thakur said the government would meet the GST collection target set for the fiscal year. During 2019-20, the government is targeting to collect Rs 6.1 lakh crore through Central GST and a shade over Rs 1 lakh crore via compensation cess on luxury and without goods such as cars, tobacco, aerated drinks and coal. The I GST balance has been estimated at Rs 50,000 crore.
During June, Central GST collections were pegged at Rs 18,366 crore, while State GST mop-up was pegged at Rs 25,343 crore, the to finance ministry said in a statement.
More than quantity, it is important to keep in mind that (growth) is only 4.5% higher than the corresponding period of last year, which should be below government expectations ... (will be) a concern and we should expect something tangible Measures in the form of greater audits and scrutiny in the coming months. In addition, the government can explore options on how consumers can be encouraged to be more attentive to tax compliance, said Pratik Jain, a partner at PwC India.
Fiscal partner of EY Abhishek Jain He said that the steps planned by the government in the coming days, such as the updating of electronic invoices and the launch of electronic invoicing, will help control evasion even when the income secretary Ajay Bhushan Pandey promised more reforms in the coming months.