Graphic: Paras Jain/MintMumbai: It’s fairly clear by now that goods and services tax (GST) collections are falling way short of the government’s initial expectations. “Our understanding is that people are still gaming the system and this has to do with input credit,” said an expert in indirect taxation, who did not want to be named. It was expected that lower effective taxes, along with increased compliance, would accelerate formalization, and organized businesses would gain share and tax collections would surge. “The government is committed to increase the percentage of compliance by taxpayers under GST,” Shukla told Parliament. In fact, the way things stand, shoring up GST revenue collections meaningfully could be a long row to hoe.

Source: Mint January 07, 2019 01:52 UTC