MODI TO REVIEW GST, BLACK MONEY POLICY ON TUESDAY
In a meeting on Tuesday next week, Prime Minister Narendra Modi will review the revenue department’s efforts to crack down on the circulation of undisclosed (‘black’) money in the economy. This is in the wake of a tepid response to the Pradhan Mantra Garib Kalyan Yojana. The income declaration scheme, launched after demonetisation, elicited disclosures worth only ~4,600 crore. In the meeting, the PM will also review the department’s preparedness on the nationwide goods and services tax, scheduled for launch on July 1. Revenue Secretary Hasmukh Adhia will give a presentation on the department’s performance over the past year and the plan for the current financial year (which began on April 1). DILASHA SETH reports
Inameetingonthecoming Tuesday, Prime Minister Narendra Modi will review the revenue department’s efforts to crack down on circulation of undisclosed money in the economy.
This is in the wake of the tepid response to the Pradhan Mantri Garib Kalyan Yojana. The income declaration scheme, launched after currency demonetisation, elicited disclosures worth only ~4,600 crore. In the meeting, the PM will also review the department’s preparedness on the nationwide goods and services tax (GST), scheduled for launch on July 1.
Revenue secretary Hasmukh Adhia will give a presentation on the department’s performance over the past year and the plan for the current financial year (which began on April 1). Also present would be the heads of the Central Board of Direct Taxes and Central Board of Excise and Customs — Sushil Chandra and Vanaja Sarna, respectively.
“The PM will go through our future strategy and give inputs,” said a senior official.
The government aims to stay with the July 1 implementation date for GST, despite businesses wanting this deferred till September 1. The revenue department will highlight the outreach efforts to spread awareness. It is to organise awareness camps in towns with a population of 100,000 and more; it has also asked states to conduct training for their legislators.
Telangana and Bihar have passed the State GST Bills in their legislatures; Rajasthan is scheduled soon. By mid-May, 14 states should have enacted this, and all by May 31.
Adhia might also highlight the progress on restructuring of the Central Board of Excise and Customs to a Central Board of Indirect Taxes and Customs. On direct taxes, the department would stress the growth in collection for 2016-17, when advance tax and self-assessment tax grew at the highest rate in five years.
Advance tax grew by 15 per cent in 2016-17 versus 7.5 per cent earlier. Self-assessment tax grew 24 per cent, from five per cent the previous year. Income tax returns grew 21.7 per cent and gross collection by 16 per cent, again the highest in five years.