How would GST affect the life of a regular tax defaulter in India?

How would GST affect the life of a regular tax defaulter in India?

It would be extremely difficult to evade taxes under the GST regime due to integration of the entire India as one market and the extensive use of information technology in the GST regime.

Let us understand some important features of the GST regime

1: Electronic Filing of Returns

  • All taxpayers must file separate electronic returns only
  • Returns must provide invoice level details
  • Input tax credit shall be allowed only after matching
  • If the service provider don’t file return and don’t pay taxes, the recipient would lose credit

Department shall know the details of each person who has received goods or services and hence immediately catch the defaulters, if they fail to deposit taxes

2: Mode of Payment of Taxes

  • System of electronic cash ledger and electronic ITC ledger
  • Tax can be deposited by internet banking, NEFT / RTGS, debit/credit card and Over The Counter
  • Date of credit to the Govt. account in the authorized bank is the date of payment for credit in electronic cash ledger
  • Payment of Tax is made by way of the debit in the electronic cash or credit ledger

3: Common portal of GST Network

GSTN to develop back end modules for 27 States (MODEL –II) and rest of the states would have their own backend system.

GST Portal to function as a Common Pass-through portal for taxpayers to

  • submit registration application
  • file returns
  • make tax payments

GSTN experts would also do data mining and they would intimate the tax officials in case a person fail to pay the GST in time.

4: Severe Punishment to tax defaulter

GST law is very strict to the tax defaulters. There is provision for arrest and prosecution for the tax defaulters in addition to severe penalty and fine.


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