Almost three months after roll out of new indirect tax regime, Revenue Secretary Hasmukh Adhia has said that the Goods and Services Tax (GST) compliance is still low. He added that a clear trend about revenue collections is likely to emerge only after three-four months, once integrated GST (IGST) is converted into Central GST and State GST, as GST revenue includes IGST revenue. He also said that compliance will fall further if penalty for late filing of returns is dropped.
Adhia has said that 10 lakh returns had been filed until October 16, for September. However, he noted that in the last 40-45 days, the issues cropping up in the new indirect tax regime had come down. He further said that the government was working on improving the ease of doing business under GST and the Group of Ministers is still looking at issues related to Composition Scheme.
The Revenue Secretary also said that there was a need to rationalise items under the 28 percent tax slab, which would be done over a period of time. He also said that Fitment Committee will periodically check if rate revisions are required, warranted. Ruling out doing away with the reverse charge mechanism and e-way bill, he said that it would mean returning to the old system of taxation.