GST Rates Cut Will Have To Factor In Revenue Loss, Says CBIC Chairman
The government’s decision to lower GST rates further will depend on the revenue loss it will have to incur, said the Chairman of Central Board of Indirect Taxes and Customs Vanaja Sarna.
“If you can manage to mop up (the losses) through any other source... you’re still secure in your revenues ,” Sarna told BloombergQuint in an interview.
On bringing petroleum and diesel under the GST, Sarna said 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 about 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.”
Watch the full interview here:
(Corrects an earlier version that misstated that GST rates are likely to be lowered)