GST has boosted direct tax base too, says Jaitley
NEW DELHI: Union Minister Arun Jaitley on Friday said implementation of the goods and services tax has helped in expanding the direct tax payer base, reflected in a 44% growth i n personal advance income tax collections this year.
In a Facebook post, Jaitley said direct tax collections are expected to be significantly higher this year.
“The implementation of the goods and services tax as a single consolidated tax has had a significant impact even on direct taxes. Those who have disclosed a business turnover for the GST now find it difficult not to disclose their net income for the purposes of income tax,” Jaitley said.
“Last year, the impact of the GST on direct tax collection was not visible. Since GST had been imposed in the middle of the year, it will be more apparent this year. The first big news for this year is that the advance tax deposit during the first quarter of this year has seen a gross increase of 44% in the personal income tax category and 17% in the corporate tax category,” he added.
GST, implemented on July 1, has forced more businesses to come under the tax net. This is because GST is a destination based tax and it is important for NEWDELHI: The Goods and Services Tax Network (GSTN) is using data analytics to look at industry outliers who may be underreporting sales as well as to target transactions between related parties specifically shown to avoid paying taxes.
The information technology network has also started matching the e-way bill data with the tax returns, said Prakash Kumar, chief executive officer of GSTN.
“Since all the processes
the entire supply chain to be registered under GST for seamless input tax credit claims.
Jaitley attributed the growth in tax collections to the antiblack money measures taken by the government, use of technology, demonetisation and the GST.
The Narendra Modi government took a slew of measures to tackle black money including enacting a stringent foreign black money act and strengthening the benami properties act. are online, we have centralized data that is easy to analyse and search for discrepancies,” he said at a press conference, ahead of GST completing a year.
GSTN is also looking at related parties, who may be just reporting all businesses among themselves.
Ajay Bhushan Pandey, chairman of GSTN, said it is time to leverage the large amount of data generated over the past one year to check for tax evasion.
GSTN has floated a draft request of a proposal for a fraud analytics provider as it looks to detect complex fraud patterns.
Besides measures like demonetization and GST have also helped the government detect tax evaders and expand the taxpayer base.
The number of new assessees who filed direct tax returns in 2017-18 was more than 1.06 crore.
Jaitley said India’s tax to GDP ratio increased by 1.5 percentage points in the four years of the Modi government despite taxation relief in the budgets and hoped that this would increase further this year.