For the Goods and Services Tax (GST) related shortfall in the revenue for the month of July-August period Rs. 8,000 crore has already been spared for the States. The reason behind the same was that all States except 1 or 2 have looked for the constitution ensured help.
As per an official, matching the invoices is cardinal so it would have to start in right earnest sooner rather than latter. Though GST Council was still open to relax the schedule for filing GST returns (GSTR-1, 2 and 3) and accessory invoice-matching after learning from the July cycle that is in motion.
Since prominent businesses that are now filing returns on a monthly basis could get extent to upload bills on the GST Network after longer intervals like quarterly or half-yearly. A while ago, the council allowed firms whose turnover is less than 1.5 crore (over 90% of the taxpayer base) to move to quarterly-filing mode from October.
It is a matter of concern as large as 40% of the 55 lakh businesses filed the GST returns for July had paid zero tax. As per an official, if needed enforcement will be carried out. Watchful inquiries and meetings can be held with such groups of taxpayers.
Once invoice matching is stable, it could prove a bit painful for a couple of months or so in case of any suspension.Such suppliers will be recorded on the basis of the amount of default done. A compliance rating will be issued to such suppliers. With this buyer may look up to the rating and might decide whether to buy from the seller. It is going to be a self-policing system.
15,000 crore has been collected through GST cesses on demerit goods in the July-August period. As per the funds released to the states were lower at just over 8,000 crore.
Source: Financial Express