Companies were able to set off a higher share of tax liability using input-tax credit in the first year of GST
NEW DELHI: The first two years of goods and services tax (GST) have been associated with a lot of activity, from rate cuts to revenue loss and technical glitches. But when it comes to the services sector, it has changed the dynamics of tax payments and collection, official data accessed by Business Standard show.
Across ten prominent services, GST revenue paid to the government has reduced by 20 per cent in the first year of GST compared to the last year of the service tax regime. This happened despite the fact that tax liability against these services had grown by 50 per cent.
Source- Business Standard.