The Finance commission warned the Finance Minister to redraft the GST rules and regulations for filling as the present GST system is full of complicity. The 15th Finance Commission has advised the Government to rethink and redraft of the GST System of the country.
|| Anjan Kumar Samal
The Finance Commission categorically remarked that within 2 years, GST rules were altered as many as 38 times which reflects it’s complicity, not its normalcy. This advice has been offered by the Commission which was recently formed by the ‘Namo Sarkar’.The said committee has advised to rethink and redraft in regard to its Tax Slab.
The committee has suggested levying more tax on Luxury items.The Comptroller & Auditor General’s report suggests that GST has completely failed to live up its full potential.
CAG mentioned that in regard to match invoice of both buyers and sellers and anti-evasion measure predicted in the indirect tax regime, which was still not in place. CAG further said that one major area where the full potential of GST roll out has not been gained is the roll out of the simplified tax compliance regime.
“The complexity of the return mechanism and the technical glitches resulted in a rollback of invoice-matching, rendering the system prone to ITC frauds. Thus, on the whole, the envisaged GST tax compliance system is non-functional,” the report revealed.
The CAG also unearthed, “serious lack of coordination between the executive and the developers.”
“The system of payment and settlement of tax that was envisaged for GST was based on one hundred percent invoice-matching and availability of input tax credit, as well as the settlement of IGST on the basis of invoice-matching. Neither is possible as of now, as an invoice-matching system has not kicked-in,” the CAG report said.