In its first report on GST, the Comptroller and Auditor General of India (CAG) has pointed out that the new tax regime has not achieved its full potential in terms of simplification even after two years of roll-out.
The report also highlighted various other deficiencies and loopholes in the tax regime. The CAG has noted that the growth of indirect taxes slowed down to 5.8 percent in 2017-2018 as compared to 21.33 percent decline during 2016-2017. But with GST, revenues also dipped further to 10 percent.
Invoice matching is the critical requirement that would yield the full benefits of the new tax reform, the report noted. It would protect the tax revenues of both the Centre and the states, and lead to proper settlement of integrated goods and service tax, it said.