Millennium Post

Post-DeMo surveillance, GST to raise tax-GDP ratio to 11.9% by FY20: Govt

Post-DeMo surveillance, GST to raise tax-GDP ratio to 11.9% by FY20: Govt
The implementation of GST and increased surveillance post demonetisation will help increase the tax-GDP ratio to 11.9 per cent by 2019-20, government said on Thursday.

The gross tax-GDP ratio in 2017-18 is estimated to be around 11.3 per cent.
In the Medium Term Expenditure Framework Statement, tabled in the Lok Sabha, the finance ministry has projected that in the medium term tax revenues will show the growth anticipated during the presentation of the Budget.
"In other words it is felt that any shocks to tax collections due to the introduction of GST will be absorbed in the current financial year and hence the tax-GDP ratio will remain at the level of 2016-17," it said.
The government has budgeted for over Rs 19.06 lakh crore from taxes in the current fiscal, a growth of about 15 per cent over the last fiscal. As per the statement, going forward "in the years 2018-19 and 2019-20 the gains from expansion of the tax base due to the introduction of GST and the increased surveillance post demonetisation will ensure that tax-GDP ratio will increase by 30 basis points".
The tax-GDP ratios are projected to be 11.6 per cent in 2018-19 and 11.9 per cent in 2019-20 respectively, it said.
Goods and Services Tax (GST) was rolled out from July 1 and it is estimated that the new indirect tax regime would add to revenues and boost GDP by about 2 per cent.
Besides, the demonetisation of Rs 500 and Rs 1,000 notes have brought an additional over 1 crore people in the tax net.
The tax department has launched operation clean money to detect people whose cash deposits post demonetisation does not match their tax profile.
'Casual Taxpayer' registration now live on GSTN portal
GST Network on Thursday said it has started the facility for registration of casual taxpayers -- those who conduct businesses occasionally.
A casual taxpayer is a person who occasionally undertakes business transactions in a state/Union Territory where he/she has no place of business.
Goods & Services Tax Network (GSTN) Chairman Navin Kumar said that the registration as 'casual taxpayer' will be valid for 90 days.
A tax payer will also have the option to extend the registration duration once for a maximum of 90 days before the expiry of the initial period for which registration was granted.
"A taxpayer must go for registration as casual taxpayer at least 5 working days prior to the commencement of business," Kumar said.
Rather than registering as regular taxpayer and being required to file 'nil' returns during off-business months, casual taxpayers can enrol for a limited period of time, GSTN said in a statement.
After a taxpayer has opted to register as a 'casual taxpayer', a challan has to be generated after giving estimated values of supplies and tax and cess liability during the period of registration.
The taxpayer has to make advance tax payment using the payment modes available at the GST portal, thereby completing the second stage of registration, it added.
"In case such a taxpayer has deposited advance tax but does not wish to continue the business, the taxpayer can apply for a refund at the time of filing application for surrender of registration," GSTN said, adding a casual taxpayer is not allowed to opt for the composition scheme.
Composition scheme allows businesses to pay taxes at a concessional rate and makes tax compliance easy.
Goods and Services Tax (GST) was rolled out from July 1 and the process of the first return filing in form GSTR-3B for the month for July has already started on the GSTN portal.
Agencies

Agencies

Our contributor helps bringing the latest updates to you


Share it
Top