GST Council to boost enforcement

GST Council to boost enforcement

 After correction in GST rates, the key focus of the GST Council will now shift to strengthening the enforcement and compliance rules, as it suspects that most of the business-to-business transactions are being kept off the book to avoid tax.

The eWay bill which is going to be compulsory from February one is expected to give a leg up to revenue collection, and the officials expect that eWay bill, coupled with reverse charge mechanism, will shore up collections by more than 25%. GST revenues have fallen continuously since September last year. The GST collections stood at Rs 92,000 crore in July, but by October, a marked decline was notices and they remained Rs 83,346 crore.

Finance Minister Arun Jaitley on Thursday had expressed concerns over non-compliance under the composition scheme, and said the unilateral declaration by traders has got the exchequer only Rs 307 crore in the first quarter, whereas the number of traders registered has crossed 17 lakh under the scheme.

Reverse charge mechanism, which requires the recipient of goods or services to pay GST instead of supplier, was suspended till March 31 amid protest by traders, but it may stage a comeback in the wake of tax evasion squeezing government's revenue from GST.

Last month, the GST Council had advanced implementation of the eWay bill imposed on the movement of goods of more than Rs 50,000 to February, from April.

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