Nearly a year after it was implemented by the Indian government, rates under the Goods and Services Tax regime may be cut further in a few days, said the Chairman of Central Board of Indirect Taxes and Customs Vanaja Sarna.
“Any decision (on the reduction) should be taken by the GST Council considering the potential revenue loss that the government will have to incur,” Sarna told BloombergQuint in an interview. “If you can mop up the loss through other sources, you’re secure in your revenues.”
On bringing petroleum and diesel under the GST, Sarna said that the GST Council may first bring aviation turbine fuel and natural gas under its ambit and study its benefits like eligibility to avail input tax credit and removal of the cascading effect of taxes. “You need to look at the revenue you may lose, and (whether) are you going to gain that much eventually.”
Sarna also spoke how GST returns filed by assesees, coupled with auditing, will help the CBIC step up enforcement. “The field offices of CBIC are scrutinising non-filing of GST returns by taxpayers.”