Acknowledging that compliance of the Goods and Services Tax (GST) is still low, Revenue Secretary Hasmukh Adhia on Monday said a clear picture of revenue under the new indirect tax regime can be drawn only after three-four months.
"Most of the revenue that has come is in the form of Integrated GST. We will have to wait for 3-4 months for a clearer picture. I haven't been able to make sense of GST revenue as it includes IGST revenue. We will have a clearer picture once IGST is converted into Central GST and State GST," Adhia said here.
While speaking at a town hall discussion organised by CNBC-TV18 and industry body Confederation of Indian Industry (CII), he said: "GST compliance is still low. Compliance will fall further if penalty for late filing of returns is dropped."
For September, 10 lakh returns had been filed until October 16, the Revenue Secretary said.
Adhia, however, noted that the issues cropping up in the new indirect tax regime had come down in the last 40-45 days.
"In the last 40-45 days, GSTN issues have come down. We must have a system that plugs all loopholes. We have not seen any major impediments with respect to GST in the last few weeks," he said.
He added that the government was working on improving the ease of doing business under GST.
"We will study all aspects, suggestions that could improve ease of doing business. The Group of Ministers is still looking at issues related to Composition Scheme," he said.
Adhia said there was a need to rationalise items under the 28 per cent tax slab, which would be done over a period of time.
"Fitment Committee will periodically check if rate revisions are required, warranted," he said.
He, however, ruled out doing away with the reverse charge mechanism and e-way bill, adding that it would mean returning to the old system of taxation.