New Delhi: The government's net tax revenues grew 5 per cent in the fiscal year ended March 31, 2021, Finance Minister Nirmala Sitharaman said on Monday.
The net tax (sum of direct and indirect taxes) revenue in 2020-21 was over Rs 14.24 lakh crore, a nearly 5 per cent growth from Rs 13.56 lakh crore in the previous financial year.
In a written reply to the Lok Sabha, Sitharaman said the government has taken many steps to boost both direct and indirect tax revenue collection, through curbing tax evasion, widening/deepening tax base, promoting voluntary compliance, reducing litigation and promoting digital transactions.
However, non-tax revenue collection dipped 36 per cent to Rs 2.08 lakh crore in 2020-21 from over Rs 3.27 lakh crore in 2019-20.
The government's net revenue (tax+non-tax) collection in the last financial year declined 3.09 per cent to Rs 16.32 lakh crore.
In reply to a separate question, Minister of State for Finance Pankaj Chaudhary said the total cess and surcharge collection under indirect taxes (GST+non-GST) increased 53 per cent to over Rs 4.39 lakh crore in 2020-21 as compared to the previous year.
In 2018-19 and 2017-18, the cess collection under indirect taxes was Rs 2.67 lakh crore and Rs 2.17 lakh crore, respectively.
"States' share of central taxes and duties are determined after deducting cesses and surcharges apart from cost of collection of the respective tax," Chaudhary said.
He further said cesses form part of Consolidated Fund of India and are used for the purpose for which they are levied, which in many cases involves grant to sates.
Giving example, Chaudhary said the entire GST compensation cess is levied for the purpose of giving compensation to states for loss of revenue due to introduction of GST.
Similarly, 100 per cent of Prarambhik Shiksha Kosh and a substantial portion of the Central Road and Infrastructure Fund, Pradhan Mantri Swasthya Suraksha Nidhi and Madhyamik and Uchchtar Shiksha Kosh is given to states as grants for respective purposes, he added.
Moreover, Prosecution proceedings have been sanctioned in 366 cases related to violation of CSR provisions under the companies law, the government said on Monday.
Under the Companies Act, 2013, certain class of profitable entities is required to shell out at least two per cent of their three-year average annual net profit towards CSR (Corporate Social Responsibility) activities.
As part of amendments to the Act, non-compliance with CSR provisions has been made "civil wrong" with effect from January 22, 2021.
"Whenever any violation of CSR provisions is reported, action against such non-compliant companies are initiated as per provisions of the Act after due examination of records and following due process of law. All CSR related defaults are compoundable.
"So far, sanction for prosecution has been accorded in 366 cases. Of these, 148 applications for compounding have been made and 75 cases have been compounded," Nirmala Sitharaman, who is in charge of corporate affairs and finance ministries, told Lok Sabha on Monday.
Generally, compoundable offences are those which can be settled by paying a certain amount of money.