The officers’ panel finalising recommendations to re-set GST rate and slabs was asked to consider a wide range of reforms, so that “a comprehensive list of suggestions may emerge.”
These include systematic changes in GST including checks and balances to prevent misuse, measures to improve voluntary compliance, policy proposals and relevant modifications needed in the law, measures for expansion of tax base, improved compliance and anti-evasion measures using better data analytics and better administrative coordination.
Review of GST
Meanwhile, according to a report by the Standing Committee on Finance tabled in the Lok Sabha on Tuesday, two years after its launch, the government has begun the review of GST, including a possible resetting of rates along with the slabs. In this connection, the committee observed that GST collections have slowed down in recent months as compared to the target. The committee expects the government to resolve all the troubling issues relating to GST at the earliest to achieve the desired revenue buoyancy.
The committee will also urge the Department of Revenue to remain vigilant to prevent misuse of provisions such as input tax credit and enhance monitoring of overall compliance. Systematic reports as well as feedback surveys must also be collected from tax payers to evaluate whether GST is operating smoothly.