Officials fear a parallel system from raw material to finished goods is in place to evade taxes. If properly addressed, 15-20 percent revenue could be added to government coffers
Government officials have identified unbilled purchases as the lead cause for revenue leakages under the Goods and Services Tax (GST), and the same was discussed by senior officers during the first national GST conference on November 25, The Times of India reports. The meeting was chaired by revenue secretary Ajay Bhushan Pandey.
Customers often make cash purchases without receiving a bill for it, and the leakage is especially 'massive' in certain products, the publication quoted an official say.
Officials fear a parallel system from raw material to finished goods is in place to evade taxes. If properly addressed, 15-20 percent revenue could be added to government coffers.
Moneycontrol could not independently verify the report.
Incentivising digital payments was one of the solutions discussed, with the Central Board of Indirect Taxes and Customs suggesting sops for customers. QR code transactions and lotteries and points-based loyalty programmes were also put forth, the report stated.
The loyalty programme would require that Government e-Marketplace (GeM) be opened for retail dealings.
Other issues discussed during the meet include uniformity between states’ interpretation of GST, and improving tax officials’ approach to customers, e-invoicing and tax reforms and an analysis of revenue trends.LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.