Clipped from: https://economictimes.indiatimes.com/news/india/cag-for-setting-up-of-time-frame-for-roll-out-of-simplified-gst-return-forms/articleshow/81675662.cms?utm_source=ETTopNews&utm_medium=HPTN&utm_campaign=AL1&utm_content=23Synopsis
The GST return system is still a work in progress despite more than three years of GST rollout, CAG audit report presented in Parliament said.
The Comptroller and Auditor General of India (CAG) on Wednesday made a case for setting up a definite time-frame for roll out of simplified GST return forms as frequent deferments are resulting in delay in stabilisation of return filing system.
In the absence of a stable and simplified return mechanism, one of the main objectives of roll out of GST i.e. simplified tax compliance system is yet to be achieved, it said.
“During the current audit, we noticed that owing to the continuing extensions in the roll out of simplified return forms, and delay in decision making, the originally envisaged system-verified flow of ITC through ‘invoice matching’ is yet to be implemented and a non-intrusive e-tax system still remains unimplemented,” it said.
It is recommended that a definite time-frame for roll out of simplified return forms may be fixed and implemented as frequent deferments are resulting in delay in stabilisation of return filing system and continued uncertainty in the GST ecosystem, the report said.
The report also noted that indirect taxes collections increased by Rs 16,627 crore during FY20 over FY19.
However, it said there is a declining trend in annual growth of indirect taxes during the last five years.
“The annual growth of indirect taxes (Y-o-Y) declined from 21.33 per cent in FY17 to only 1.76 per cent in FY20. Further, share of indirect taxes in total revenue receipts declined from 38.95 per cent in FY’17 to 36.92 per cent in FY’20,” it said.
Central GST taxes revenue as percentage of GDP declined from 3.08 per cent in FY19 to 2.95 per cent in FY20, it said.