While it remains to be seen to what extent tax evasion reduces in the GST era, compliance cost is sure to rise. From all these figures we can conclude that we are largely a tax non-compliant society.”And the government intends to tackle this by the implementation of the goods and services tax (GST). The input tax credit mechanism will entirely be online and real time. “The charges range from Rs500-5,000 depending on the kind of service and for small companies incurring such expenditure may hurt their margins. While it remains to be seen to what extent tax evasion reduces in the GST era, compliance cost is sure to rise.

Source: Mint May 04, 2017 02:15 UTC