Read about the latest proposal from the GST Council

27 Jun 2022 , 09:27 AM

Prior to the next round of revisions in the indirect tax regime, which will complete five years of implementation on July 1, the Goods and Services Tax (GST) Council is set to take up a proposal for tougher examination and verification of high-risk taxpayers.

Ajit Pawar, the finance minister for Maharashtra, is leading a group of ministers (GoM) that will present the council with a report on GST system reforms. The GoM has recommended, among other things, that information about phony traders who are not registered be made public and that banks be required to provide information on transactions made through Point of Sale (POS).

As compensation to the states comes to an end this month, the council meeting this week in Chandigarh on June 28—29 is anticipated to concentrate on methods to increase revenue collection and plug leaks.

The council had established a GoM under Pawar the previous year to assess the IT resources and user interface accessible to tax officials and recommend actions to improve the system’s effectiveness and efficiency, including modifications to business procedures. In order to stop income leaks, it was also instructed to pinpoint probable evasion sources.

To stop input tax credit fraud, the GoM advised verifying the physical addresses of high-risk taxpayers. Additionally, it has advised requiring the inclusion of an energy customer registration number at the time of GSTN registration, having the National Payments Corporation of India (NPCI) certify taxpayers’ bank accounts, and setting up a feedback system to identify suspicious activities.