New Delhi, Sept 7 (KNN) Since the implementation of GST, central government has made lots of changes in this new indirect tax law to make it as simple as possible. In yet another step, government is planning to cut GST slabs rate from present five to two in the near future.

This was said by AK Jyotishi, Principal Chief Commissioner of Central Taxes Bengaluru Zone at Workshop on GST: Practical Requirements and Challenges organized by Bangalore Chamber of Industry and Commerce (BCIC).

The thought for making GST from 5 to 2 rate tax, he said is guided by the fact that 90% of the taxes come under the 18% rate slab.

Calling it a transformational law, Jyotishi said “as the law is maturing, the industry which initially had inhibitions and doubts is now voluntarily complying with the law.”

Accepting the fact that GST was complex and had glitches initially, he said the government has removed maximum of its hitches to make it as simple as possible.

Besides, he warned by saying that there is an impression that tax assesses can get away by not complying with GST law in the garb that the Department is still using manual methods.

But let me flag you, after the initial handholding and go-slow attitude which was deliberate, we have other measures to track tax defaulters and will act with a stern hand, if tax payers continue to default, he added.

The government is using data analytics and the defaults have already been detected, he said. 

Sharing the data, Jyothishi said that as per current records there are 8 lakh assesses, of which 3.4 lakh were monitored by central government and the rest by the State.

The Department collects on an average Rs. 6,500 crores every month. The Tax base has increased from 60 lakh crores to 1.10 crores. Basically, the increase is due to voluntary compliance and also some sectors previously left out, have now come under the GST gambit.