CBIC steps up revenue collection drive with states in fourth quarter

By:
Categories: GST Recent News

Central Board Indirect Taxes and Customs (CBIC) is scaling up its revenue collection drive in the fourth quarter of the fiscal jointly with state governments as the tax administrations try to offset the revenue losses from the recent reduction in excise duty and value added tax (VAT) on petrol and diesel.

Since the beginning of the new year, the top brass of CBIC has been holding a series of meetings with its field officials and their counterparts from state tax administrations to optimise tax collections. Meetings meant for revenue augmentation have already been held with state officials of Tamil Nadu, Karnataka, Gujarat, Rajasthan, Punjab, Haryana, Himachal Pradesh and union territories of Jammu & Kashmir and Chandigarh, read an update from CBIC to officials on its website.

Improving GST revenue collection efficiency is important for revenue buoyancy given that the new wave of the coronavirus pandemic could dampen consumption. Also, it could help bridge a part of the revenue gap due to the tax cut on auto fuel.

The central government had in November announced a sharp reduction in excise duty of 10 a litre on diesel and five a litre on petrol offering a big relief to consumers. The Centre’s move, aimed at cooling fuel prices, was followed up by most state governments. States are on board with the Centre’s efforts to augment GST revenue receipts given that improved tax administration efficiency will help in bridging their revenue shortfall when GST compensation comes to an end in June.

GST authorities have been tightening the rules to improve compliance and to prevent tax credit-related irregularities which involve use of fake invoices. CBIC issued a clarification earlier this month asking field officers to give businesses an opportunity for explaining their position before certain provisions that kicked in from January meant to enforce tax compliance are initiated. That involved recovery of ‘self-assessed’ tax in the case of certain mismatches in the return forms filed.

Source from: https://www.livemint.com/news/india/cbic-steps-up-revenue-collection-drive-in-fourth-quarter-with-states-11642506780385.html