Goods and Service Tax – GST – By: – Nagesh Bajaj – Dated:- 7-11-2011 Last Replied Date:- 30-12-1899 – While the Government is trying hard with opposition parties to implement the Goods and Services Tax from April next year, a study carried out by the Comptroller and Auditor General of India [CAG] has brought out shocking details of the manner in which several states are operating the Value – Added Tax (VAT) system. Of the 23 states studied, it was found that in 10 states, there was a dip in the average growth of revenue during the past – VAT regime against those relating to pre-VAT period. Those included major states like Gujarat and Tamil Nadu. Though the report attributed the loss of revenue despite increase in tax base to tax evasion th
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etail price of goods despite sharp decline in the rate of tax. As a result, the benefit of ₹ 40 crore was illegally retained by the manufacturers and dealers in the VAT chain instead of passing on the gains to consumers. In another major revelation, in some states, tax exempted manufacturers collected taxes from the purchaser of their goods without remitting it to the state. Consequently, the states incurred a sizeable revenue loss as the purchaser of those goods also claimed input tax credit on those transactions. CAG suggested e- filing of returns be made mandatory in GST and taxpayers must provide basic data for scrutiny to establish the trail of transactions leading to input tax credit. Timeframe for scrutiny of tax returns should
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