Centre, states to work on widening GST base
The Indian government is collaborating with states to expand the GST tax base using data analytics and improved invoice matching. These measures aim to reduce revenue leakage and simplify compliance for businesses by April.
Why it matters
Reflects ongoing efforts to modernize tax administration and improve fiscal efficiency in a large emerging economy.
NEW DELHI: With GST rate rationalisation and procedural simplification out of the way, the Centre has offered to help the states in widening the base using data analytics, with changes in the return filing system and invoice matching also likely to plug leakages."We have had discussions on improving the base and also quality of disclosure... We can leverage technology to increase the base without the exercise being intrusive. We can improve the analytics and work with GST Network (the back-end data arm) on the identified gaps," an official said, adding that some analysis has also been shared with the states. Currently, there are 1.7 crore registered taxpayers and officials indicated that this number can be increased.They said with changes in returns and the invoice matching system will also help plug revenue leakages, while also making life simpler.
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