The much-awaited GST rollout took place from the historic Central Hall of the Parliament on the midnight on June 30. At the event, Prime Minister Narendra Modi said GST will not only bring transparency but will also help fight the problem of black money and corruption. Taking a major step in that direction, the government is now planning to stop tax evasion by linking the GST number with the permanent account number (PAN) issued by the income tax department. The government believes that this move will help at curbing tax malpractices and will prevent tax evasion in the country.
If the GST number is linked with the PAN card, it will fall in line with the already prevailing PAN-based system for income tax facilitating data exchange and taxpayer compliance. The PAN-linked system will help in providing a correlation between the payment of direct and indirect taxes. It will also provide information within the tax authorities administering them. Since PAN has the single largest base in the country it will provide an additional advantage of monitoring more people.
There are over 24 crore people registered under PAN while only 65 lakh have got themselves registered with GST network. Earlier, the government was given a proposal to use Aadhaar card for the process but it was rejected as PAN was considered as a better option.
The impact of GST can already be felt in the Indian market. Tata Motors-owned Jaguar Land Rover today reduced prices of its entire vehicle range in India on an average by 7 per cent to pass on the benefit of reduced tax incidence under GST. “On an average, on the basis of ex-showroom Delhi prices, the reduction in the prices of our vehicles across the range will be around 7 per cent,” Jaguar Land Rover India President and Managing Director Rohit Suri told PTI.