Non-compliance in GST payments may be burning a Rs 5 lakh crore hole in revenues, says report

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The government may be losing Rs 5 lakh crore in indirect tax revenue a year, amounting to 40 percent of its goods and services tax (GST) collection target, due to defaults and evasion, according to a report by Hindustan Times. According to the report, which cites the Fifteenth Finance Commission’s (FFC), policymakers fear that businesses are not paying their fair share of taxes.

FFC made a presentation to the GST Council recently and assessed that the revenue loss was equivalent to 2.4 percent of gross domestic product, the HT report said. This works out to Rs 5 lakh crore if one goes by the first advance estimate of nominal GDP for FY20 released earlier this month, it said.

This could be as much as 40 percent of the GST revenue centre and states together may collect this year, going by the trend of an average Rs 1 lakh crore a month GST revenue in the first nine months of the current fiscal, as per the report. In the nine months to December 31, central and state governments have collected more than Rs 9 lakh crore in GST and hope to collect an additional Rs 3.55 lakh crore by March-end.

Read More at: https://www.cnbctv18.com/economy/non-compliance-in-gst-payments-may-be-burning-a-rs-5-lakh-crore-hole-in-revenues-says-report-5095571.htm

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