The assurance comes at a time businesses are concerned about further tightening of rules to boost revenue collection, as central and state governments face fiscal pressures amid a surge in inflation. "Without upsetting the balance between enforcement and (taxpayer) facilitation, we will go after those who game the system and evade taxes. It will be with the aid of data analytics," Johri said in an interview.

While the Centre is facing fiscal pressure after lowering excise duty on petrol and diesel in May, states are staring at a possible loss of GST compensation after June. Discussions within the GST Council to boost revenue receipts by raising GST rates have not borne fruit as a ministerial panel led by Karnataka chief minister Basavaraj Bommai that looked into the issue opted to defer it for now because of high inflation, Mint reported on 18 June.

In the meantime, the Council is expected to take several steps at its two-day meeting here from Tuesday to increase the efficiency of the indirect tax system. That is, revenue enhancement is being pursued by checking tax evasion by dubious entities rather than by a tax rate hike that would have affected consumers. GST authorities have taken stringent action in the last two years against errant entities dealing in fake invoices and bogus tax credits. Increased reporting requirements like e-invoicing or real-time reporting of business-to-business transactions to a government portal have been aiding in this effort.

Industry representatives said this was not the time for tax rate changes and that tax inspectors should not misuse their powers. "It is good to strengthen GST compliances and procedural systems by giving appropriate powers in the hands of GST officers for conducting an inspection, search and seizure, but such powers should not be misused by GST officers. There should be proper accountability and responsibility for their actions as the objective of the GST is also to provide ease of business and support to the trade," said Bimal Jain, chairman, indirect tax committee of industry chamber PHDCCI.

Jain added that it is advisable that GST Council not increase rates for specified goods or services, keeping the present rate of inflation in mind to support the sustainability and growth of the market. He said GST revenue collection has increased and has maintained a satisfactory level for the last nine months. "GST rate changes with rationalization, if any, should be considered and done holistically at one go and not in a piecemeal manner," Jain said.

CBIC's Johri said although not on the agenda, a recent Supreme Court decision on a tax dispute with a private firm over integrated GST on ocean freight—the Mohit Minerals Pvt. Ltd case—may come up for discussions. The court's observations that GST Council's recommendations are not binding on the Centre and states and that they have only persuasive value created headlines.