oppn parties GST Tax Collection Enthuses Government

News Snippets

  • Corona cases in India cross 4000 and the death toll stands at 124
  • The government decides to double the testing of corona suspects from 10000 now to 20000 in the next three days
  • Flipkart assures employees that there will be no job or salary cuts due to the COVID-19 pandemic
  • Although it was obvious, but the government still clarifies that there is no need to switch off appliances and only lights need to be switched off on April 5 at 9pm after confusion in the minds of some people
  • PM Modi and President Trump decide "to deploy full strength of (Indo-US) partnership" to fight against COVID-19
  • 17 states have reported 1023 cases of coronavirus linked to the Tablighi Jamaat, which translates to 30% of all positive cases in India
  • The government says people should not use alcohol-based hand sanitizers before lighting diyas or candles on April 5
  • The railways say there is no certainty yet when services will resume after the lockdown and a final decision will be taken in the next few days
  • As coronavirus cases multiply in Assam, six north-east states seal their borders with the state
  • Power System Operation Corporation Ltd. (POCOSO) putting all systems and protocols in place at war-footing to ensure there is no grid failure due to reduction in demand on April 5 at 9 pm
  • Power ministry scotches rumours that the power grid might fail due to the 9-minute blackout called by PM Modi on Sunday, April 5
  • Centre asks people to wear home-made masks if it is absolutely essential for them to step out of homes
  • Centre asks states to allow licensed street vendors to sell essential items
  • 8000 samples were tested across India on April 2, but the government said that testing will be need-based and will not be used as a confidence-boosting measure
  • Air India operating special flights to fly passengers stuck in India since the lockdown
26 nurses and 3 doctors test positive for COVID-19 at Wockhardt Hospital in Mumbai, facility cordoned off, no entry or exit permitted from the hospital
oppn parties
GST Tax Collection Enthuses Government

By Sampriti Sarkar
First publised on 2017-09-06 10:53:17

About the Author

Sunil Garodia Post graduate student of Calcutta University. Aspiring economist. Budding writer.
After the implementation of the historical GST Act on 1st July, the government revenue has exceeded the estimation of Rs 91,000 crores in the first month by Rs 2283 crores from just 64.42per cent of the total taxpayer base.Tax collections for July are likely to go up further when all the tax payers file returns. As of now, 38.38 lakh taxpayers filed returns. As per registration records, 59.57 lakh businesses would file return for July.

Given that GST is in the process of stabilising, the collection of over Rs 92,000 looks encouraging. The government is hopeful that GST revenues will stay on course for the remaining eight months of 2017-18.Of the Rs 92,283 crore tax collected, approximately Rs 14,894 crore has come in the form of Central GST(CGST), Rs 22,722 crore from State GST (SGST), Rs 47,469 crore from Integrated GST(IGST) and Rs 7,198 crore from compensation cess levied on demerit and luxury goods. This is when a third of the total tax payers are yet to submit their returns.

Since GST is a destination-based consumption tax, Centre will ensure that all states get their revenue share based on actual consumption of goods in each state. The cess on luxury and demerit goods is aimed at compensating states for any revenue shortfall due to GST. As per the sharing of tax revenue is concerned, the Centre will compensate the states for any revenue loss calculated on a base year of 2015-16 and assuming a revenue growth of 14 per cent.The government is yet to asses if the individual states have met their targets.

IGST will be shared between CGST and SGST based on the extent to which it has been used for payment of the both. This allocation will be based on the cross-utilisation report to be achieved from the GST Network (GSTN). Of the 87 lakh registered on the GSTN portal, nearly 71 lakh businesses have migrated from the previous regime, while the others are new taxpayers.

The main central taxes that coalesced into GST are excise duty, service tax, CVD and SAD, while the state VAT has also been included in it along with various other local taxes.In the last year, Indirect tax receipts from central excise, service tax and customs duty totalled Rs 8.63 trillion. Excise duty collection was Rs 3.83 trillion while the collection from service industry was Rs 2.54 trillion. The total tax revenue collection was Rs 17.01 in the financial year 2016-17.Budget estimates thatRs 19.11 trillion tax revenue will be collected in financial year 2017-18, an 11.75 per cent increase from the last financial year.

Niti Aayog, the government’s highest planning body stated that due to an efficient tax system post-GST, tax revenue is expected to grow to Rs 26.48 lakh crore by 2019-20 from Rs 17.03 lakh crore in 2016-17. It predicts a 14 per cent growth in 2017-18, followed by 16 per cent and 17 per cent in the next two financial years.

The Finance Minister Arun Jaitley said that the government will adopt a ‘carrot-and-stick policy’ on taxation, saying post GST tax authorities will go after evaders whose invoices do not match tax payment. He highlighted that the government over the last 2-3 years has made tax evasion difficult and GST will help expand the direct tax base and increase indirect tax collection. Under GST, in order to claim benefit of input credit, businesses have to disclose the bulk of transaction in the form of invoice.

Post release of the revenue collection data, the Finance Minister said"In sum total we seem to be comfortable… the red line seems to have been crossed." The minister however insisted that it should be accounted that GST collection included levied cess. So, with collection exceeding expectation, the Government seems to be in a comfortable position. Moreover, the fear of initial revenue loss hasalso subsided for the time being.