The Comptroller and Auditor General of India (CAG), in its report tabled before the Parliament yesterday, stated that the frequent deferments in rolling out the simplified return form are resulting in a delay in stabilisation of the return filing system and continued uncertainty in the GST eco-system.
The report stated that “In the last Audit Report on Indirect taxes, Audit had reviewed the progress made in respect of the implementation of simplified return mechanism under GST and system-verified flow of Input Tax Credit (ITC). Audit observed that owing to continuing extensions in the rollout of the simplified return system, and delay in decision making, the originally envisaged system verified flow of ITC was yet to be implemented despite more than three years of rollout of GST. In the absence of a stable and simplified return system, one of the main objectives of roll out of GST i.e. simplified tax compliance system was yet to be achieved. Accordingly, Audit had recommended that a definite time frame for roll out of simplified return forms may be fixed and implemented as frequent deferments were resulting in a delay in stabilization of the return filing system and continued uncertainty in the GST eco-system.”
During 2020-21, Audit further reviewed the status of implementation of the simplified return mechanism and noted significant progress with respect to linking of GSTR-1, GSTR-2B, and GSTR-3B; and restricting input tax credit (ITC) of the recipient taxpayers to the supplies declared by suppliers.
“However, Audit is of the view that further steps need to be taken to achieve a non-intrusive e-tax system with a system-verified flow of ITC such as mandatory filing of GSTR1 before the filing of GSTR-3B and enhanced use of preventive checks in the GST Common portal,” the report said.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan Premium. Follow us on Telegram for quick updates.
