The Government may probe on revenue loss due to composition scheme for Small Medium Entrprises (SMEs) under the current Goods and Services Tax (GST) regime.
Reportedly, for July-September, around 10 lakh entities had opted for the composition scheme for GST, where only the turnover details have to be disclosed and tax is paid at a flat rate. Out of these, around 6 lakh filed returns till December 25.
But the total amount mopped up from these entities for the three-month period added up to Rs 251crore, translating into an annual turnover of Rs 8 lakh.
Now around 15 lakh entities are registered for the composition scheme and the department fears revenue leakage due to multiple relaxations.
The immediate worry, however, is GST, where aspects like invoice matching, reverse charge, and e-way bills were put on the back burner as there was an uproar of sorts against the new regime that sought to plug leakage of government revenue. While the government will roll out e-way bills next month and make it mandatory from February to track consignments moving in trucks, the GST Council will decide on the reintroduction of the two other tools when it meets on January 18.
