States have made demand to have real time access to GST returns and e-way bills in order to check tax evasion. They said this step could resolve their ongoing fund crisis and help to compensate states for their revenue shortfall.
Currently, these data are stored in the GST Network, which compiles reports and sends them to all the states and Union territories.
Kerala finance minister Thomas Isaac said that Kerala may not require compensation cess at all, if it is permitted to have real-time access to annual returns and e-way bills.
According to Isaac, ineffective tax collection is one of the three key reasons for low GST revenue collections and real time access could help states to detect frauds using data analytics. The other two reasons could be economic slowdown and high cuts of GST slabs.
Real time access can be possible, if states raised this issue at the council, in an formal way. Experts said that access to data would certainly help states in better compliance. Common access could be given to states through login IDs and passwords.
The Union ministry is taking all their efforts to control revenue leakages of both central GST (CGST) and state GST (SGST). They are going to hold a national conference on 7th January, 2020 to address the issues like fraud and tax evasion and fake input tax credit (ITC) .