Skip to main content

More compliance, less black money

By
For all those who thought that GST was just an indirect tax reform, think again.
The implementation of GST will affect direct taxes as well, helpinwideningthetaxbaseand increase taxe collections.
According to tax administrators, GST will help in curbing domesticblackmoney.“Though it is a reform for indirect taxes, there are filers who understate incomes by not reporting transactions. By doing this, they save excise, VAT, Octroi etc, and under-report their incomes. Since, GSTwillhaveapapertrail, which can be accessed by the income tax department, such practiceswilldiscouragegeneration of black money in the system,” a tax official said.
Permanent account number (PAN) and Aadhar will be used more frequently, and will be requiredtofileGSTreturns. This willhelpthetaxmentracktransactions more systematically. Therecanbemoredatamapping forauditbyrevenueauthorities.
Last year, a panel headed by chief economic adviser Arvind Subramanian had said that bringing alcohol, real estate and precious metals, including gold, withintheambitofGSTwillhelp curb blackmoney in the sectors.
Though alcohol is likely to remain outside GST, the other two key sources of illicit money are likely to get busted.
Both the Central Board of Direct Taxes and the Central Board of Excise and Customs havestartedsharingdatatomonitortheflowofblackmoneymore effectively, sources said.
“If a retailer has purchased goods from a wholesaler and is notshowingthatpurchasetoday, he will not be able to do so after GST,” ataxofficialwiththeDelhi government said.“To substantiate his purchase, he will have to maintain the books of sales, for which proper bills will be generated. SoanytraderafterGSTwill not be able to sell products or goods without bills. Once a bill is in the system, scope for black money reduces automatically.”
The dual-monitoring structure proposed within GST, involving the Centre and the states, willalsocurbtaxevasions. So, even if one set of tax authorities overlooks or fails to detect evasion, there is the possibility that the other authority may not.
Hindustan Times New Delhi,05th August 2016

Comments

Post a Comment

Popular posts from this blog

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

By
  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   “The renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,” said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...
Post a Comment
Read more

After RBI rate cut, check latest home loan interest rates of top banks for loans above Rs 75 lakh

By
  The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points from 6.50% to 6.25% in its monetary policy review as announced on February 7, 2025. After the RBI repo rate cut, banks such as SBI, Canara Bank, PNB, and Union Bank among others have cut their repo linked lending rates. Most other banks are also expected to cut their lending rates in line with the RBI rate cut. After banks cut their lending rates, their home loan borrowers will have to pay less interest. Normally, when a lender cuts the lending rate, borrowers get two options: Either to go for a reduction in EMIs or reduce the tenure of the loan. The second option will help the borrowers clear their home loan outstanding faster. In case, the borrower goes for reduction in EMI then the lower lending rate of the lender would mean lower Equated Monthly Installment (EMI) for borrowers.   EMI is the amount you will pay on a specific date each month till the loan is repaid in full.A repo rate-linked home ...
Post a Comment
Read more

GST collections rise 9.9% to exceed Rs 1.96 trillion in March 2025

By
  Gross GST collection in March grew 9.9 per cent to over Rs 1.96 lakh crore, government data showed on Tuesday. GST revenue from domestic transactions rose 8.8 per cent to Rs 1.49 lakh crore, while revenue from imported goods was higher 13.56 per cent to Rs 46,919 crore. Total refunds during March rose 41 per cent to Rs 19,615 crore. After adjusting refunds, net GST revenue stood at over Rs 1.76 lakh crore in March 2025, a 7.3 per cent growth over the year-ago period.       - Business Standard 02 th March, 2025
Post a Comment
Read more