{"id":23423,"date":"2019-08-25T07:09:56","date_gmt":"2019-08-25T01:39:56","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=23423"},"modified":"2021-03-20T18:02:17","modified_gmt":"2021-03-20T12:32:17","slug":"cag-gst-regime-has-failed-to-perform-to-its-full-potential","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/cag-gst-regime-has-failed-to-perform-to-its-full-potential\/","title":{"rendered":"CAG: GST Regime has failed to perform to its Full Potential"},"content":{"rendered":"<p class=\"has-drop-cap\">The Comptroller and Auditor General of India (CAG) said that it has been two years since the government&rsquo;s much-touted indirect tax regime &ndash; GST was rolled out, but the technology-driven tax code has failed to curb evasion as was envisaged. The GST compliance system has not functioning up to the mark which leads to a greater number of ITC frauds. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Loopholes of GST Regime<\/h2>\n\n\n\n<ol><li>Complete GST potential was not achieved in the implementation of the simplified tax compliance regime.<\/li><li>Lack of coordination amongst the executive and the developers.<\/li><li>The system validations were not as per the provisions of the <strong>GST Act<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Goods_and_Services_Tax_(India)\">[1]<\/a><\/sup>, as a result, the registration module had a few critical gaps. One such significant gap is that the system could not validate and prevent unauthorized taxpayers from availing the benefits of the Composition Levy Scheme.<\/li><li>There is a significant dip in the compliance front. In April 2018, 87% of taxpayers filed their <strong>GSTR-3B<\/strong>. However, this number reduced to 79% by December.<\/li><li>In GST, an online system which validates <strong><a href=\"https:\/\/enterslice.com\/learning\/changes-in-utilization-of-input-tax-credit-under-the-gst-act\/\">Input Tax Credit<\/a><\/strong> (ITC) claims via invoice matching is still not implemented.<\/li><li>Lack of coordination amongst the executive and the developers.<\/li><li>Complexity in the implementation of the <strong><a href=\"https:\/\/enterslice.com\/gst-return-filing\">GST return<\/a><\/strong> mechanism and technology.<\/li><li>Lack of adherence to business growth.<\/li><li>Short filing of GSTR-1 which is mandatory to file is an area of concern which needs to be addressed.<\/li><li>Due to lack of preparedness of industry and GSPs, Initially GSTR-3B was introduced for just two months which has been continued till date and GSTRs-2 and 3 have been kept in abeyance.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Data Analysis of Growth Rate and Frauds<\/h2>\n\n\n\n<ul><li>As during the year 2016-17, the percentage of growth rate was 21.33 percent which in the year 2017-18 slowed down to 5.80 percent. Additionally, there was a 10 percent dip with the revenue from goods and services.<\/li><li>During 2017-18, there was a short transfer of Rs 6,466 crore of GST compensation cess to the public account.<\/li><li>In the last two years of its implementation Rs, 45,682.83 crores worth of tax frauds were found.<\/li><li>In the April to June period of the fiscal year 2019-20, the government data showed that an amount worth Rs 6520.40 crore was detected and a total, 9,385 cases of GST frauds were reported in the last two years.<\/li><\/ul>\n\n\n\n<p><b>See, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/enterslice.com\/learning\/e-way-bill-system-under-gst\/\">What is the E-Way Bill System under GST?&#65279;<\/a><\/mark>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Comptroller and Auditor General of India (CAG) said that it has been two years since the government&rsquo;s much-touted indirect tax regime &ndash; GST was rolled out, but the technology-driven tax code has failed to curb evasion as was envisaged. The GST compliance system has not functioning up to the mark which leads to a [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":23470,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[49],"tags":[2675],"acf":{"service_id":"68"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CAG: GST Regime has failed to perform to its Full Potential - Enterslice<\/title>\n<meta name=\"description\" content=\"The CAG said that it has been two years since the government\u2019s much-touted indirect tax regime - GST was rolled out, but the technology-driven tax.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/cag-gst-regime-has-failed-to-perform-to-its-full-potential\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CAG: GST Regime has failed to perform to its Full Potential - Enterslice\" \/>\n<meta property=\"og:description\" content=\"The CAG said that it has been two years since the government\u2019s much-touted indirect tax regime - GST was rolled out, but the technology-driven tax.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/cag-gst-regime-has-failed-to-perform-to-its-full-potential\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-08-25T01:39:56+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-03-20T12:32:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/08\/CAG-GST-Regime-has-failed-to-perform-to-its-Full-Potential.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":446,"readingTime":2,"nextPost":{"id":23426,"slug":"non-generation-of-e-way-bill-after-november-21-2019-in-case-of-non-filing-of-gst-return"},"prevPost":{"id":23425,"slug":"audit-exposure-draft-of-standards-on-internal-audit-sia-120-internal-control"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/08\/CAG-GST-Regime-has-failed-to-perform-to-its-Full-Potential.jpg","postTerms":"GST","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/23423"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=23423"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/23423\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/23470"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=23423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=23423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=23423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}