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CAG flags deficiencies in functioning of GST

The return mechanism's complexity and technical glitches resulted in rolling back of invoice matching, rendering the system prone to ITC fraud

TNC Rajagopalan

The recent report of the Union comptroller and auditor general (CAG) on the goods and services tax (GST) does praise its rollout as a landmark achievement. And, points at several deficiencies in its implementation.  GST, it says, was rolled out with the objective of reducing the cascading of tax, ushering in a common market for goods and services, and bringing in a simplified, self-regulating and non-intrusive compliance regime. It appreciates that multiple central and state taxes, barring a few goods/sectors, have been unified, Input Tax Credit (ITC) is available across the ...