Why is it in the news?
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The Comptroller and Auditor General (CAG) tabled in the parliament its first ever audit of the Goods and Services.
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The report has pointed out some lacunae in the goods and services tax (GST) regime.
More in the news
Findings of the CAG report:
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The government had failed to try out the system before its rollout, leading to inadequate compliance mechanisms, and lower tax revenues.
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Tax collections under the GST slowed down in the first year of its roll out.
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System-validated input tax credit through invoice matching is not in place and a non-intrusive e-tax system still remains elusive after two years of its roll out.
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The complexity of the returns mechanism and the technical glitches resulted in roll back of invoice-matching, rendering the system prone to input tax credit frauds.
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The compliance in terms of the number of returns filed had been falling month after month.
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Also, the government had not been following the rules set out regarding the transfer of revenue to the States.
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There was inadequate coordination between the Department of Revenue, the Central Board of Indirect Taxes and Customs and the GST Network.
Source
The Hindu.