(MENAFN- KNN India)
New Delhi, Jul 16 (KNN) Recent data from the Goods and Services Tax Network (GSTN) reveals a significant disparity in GST compliance rates across Indian states and union territories.
Gujarat leads the nation in GST return filing compliance, with an impressive 95 per cent of eligible businesses submitting their monthly tax returns through Form 3B for the current fiscal year up to May's end.
Following closely are Himachal Pradesh, Tamil Nadu, Uttar Pradesh, Punjab, Haryana, Delhi, Rajasthan, and West Bengal, all reporting over 90 per cent compliance rates.
Among union territories, Jammu and Kashmir and Chandigarh have also achieved the 90 per cent compliance benchmark.
This high level of adherence to tax regulations is particularly noteworthy in states with large business registrations, such as Gujarat, Rajasthan, Punjab, and Uttar Pradesh.
However, the data highlights a concerning trend in some regions. North-eastern states like Arunachal Pradesh and Manipur reported compliance rates of 74 per cent and 77 per cent respectively, while the Andaman and Nicobar Islands registered about 80 per cent compliance.
These figures indicate a significant gap compared to the top-performing states.
It's worth noting that across all states and union territories, approximately 8-18 per cent of taxpayers filed their returns after the due date.
The importance of tax compliance extends beyond mere regulatory adherence. It serves as an indicator of the efficiency of the tax collection system and directly impacts overall revenue collection.
Moreover, the Finance Commission considers states' tax efforts and fiscal performance when determining the allocation of central government resources, thus incentivising efficient tax administration at the state level.
Experts emphasise that improving compliance and expanding the tax base remain key priorities for both central and state GST authorities.
They suggest that enhancing compliance in underperforming regions will require a comprehensive strategy addressing various factors contributing to lower filing rates.
As the GST regime continues to evolve, these compliance statistics offer valuable insights into the effectiveness of tax administration across India, highlighting both achievements and areas requiring focused attention.
(KNN Bureau)
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