Skip to main content

GST Mopup Edges Closer to Rs 1 Lakh Crore

GST Mopup Edges Closer to Rs 1 Lakh Crore 
In a FB post, Jaitley says once revenue stabilises Council will look into tax simplification and including more products
Goods and services tax (GST) collections rose further in June, raising the expectations of further rationalisation in the 28% slab as the mop-up moves closer to the ?1 lakh crore mark. India marked the first anniversary of GST on Sunday, with the government hailing one of the country’s most significant tax reforms since independence as a success.
Data released by the government showed GST collection in June at Rs 95,610 crore, higher than Rs 94,016 crore in May and well above the monthly average of Rs 89,885 crore in the last financial year.
“A steady and consistent increase in GST collections this financial year reflects the achievement of better tax compliance of GST,” said Abhis hek Jain, tax partner, EY India.Policymakers have repeatedly said that as GST revenues stabili se, the government will consider further rationalisation in rates.
“Key areas of future action will in clude further simplifying and ratio nalising the rate structure and bringing more products into the GST,” cabinet minster Arun Jaitley said in a Facebook post on Sunday. “I am confident that once revenue stabilises and the GST settles, the GST Council will look into these carefully and act judiciously.”The GST Council, the apex decision-making body for the tax, will meet next on July 21.
The government wants to keep just the so-called sin goods, such as cigarettes, in the top 28% bracket. Items such as paints and cement are still in the slab and there are demands they should be slotted in the 18% bracket.India’s June GST revenue indicated that the landmark indirect tax regime may be stabilising, said finance secretary Hasmukh Adhia, who is also revenue secretary.
“In May, GST collections stood at Rs 94,016 crore, in June it is Rs 95,610 crore... There is an increase between May and June... We hope we can take it to Rs 1 lakh crore,” Adhia said at an event to mark one year of GST. He added that Rs 1 lakh crore revenue collection in April was not the norm yet, but this could happen soon.
“The June collections indicate that revenues are now stabilising and inching close to the Rs 1 trillion mark,” said MS Mani, partner, Deloitte India, adding the government may now focus more on data mining to raise collections. “It is essential now to have more revenue buoyancy in order to move ahead with further rate rationalisation measures.”Out of the Rs 95,610 collected in June, central GST accounted for Rs 15,968 crore, state GST for Rs 22,021crore.
The Economic Times, New Delhi, 02nd July 2018

Comments

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6

Jaitley plans to cut MSME tax rate to 25%

Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem

Don't forget to verify your income tax return in August: Here's the process

  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s