more-inAlleged bureaucratic laxity coupled with the chinks in the tax collection mechanism of the State government are understood to have further deepened the current resource crunch in the State. Other than the legal and technical hassles faced by the tax sleuths in adapting themselves to the fledgling Goods and Services Tax system, the alleged sloppiness of a section of the officials in stepping up tax collection has come into focus in the wake of the crisis. The government was forced to impose restrictions on treasury payments and stagger major payments to prevent the precipitation of the crisis. The maximum collectible arrears of the Value Added Tax has been roughly estimated at around ₹5,000 crore. Toning up the system for collecting tax and its arrears alone would offer a respite to the current situation, the source said.

Source: The Hindu November 23, 2017 12:56 UTC