Indirect tax collection may fall short, says Garg
15, Mar 2019
The government is reasonably confident of meeting its direct tax collection target for the current financial year but the indirect tax collection may fall short.
The Rationale Behind:
- GST collections in February dropped to ₹97,247 crore in February from ₹1.02 lakh crore in the previous month.
- The government had lowered the GST collection target for current fiscal to ₹11.47 lakh crore in the revised estimates, from₹13.71 lakh crore budgeted initially.
- For the next fiscal 2019-20, the GST collection target had been budgeted at ₹13.71 lakh crore.
Classification of Taxes
What is a Tax?
Taxes are generally an involuntary fee levied on individuals and corporations by the government in order to finance government activities. Taxes are essentially of quid pro quo in nature. It means a favour or advantage granted in return for something.
- Goods and Services Tax is a comprehensive indirect tax which is to be levied on the manufacture, sale and consumption of goods and services in India.
- GST eliminates the cascading effect of taxes because it is taxed at every point of business and the input credit is available in the value chain.
- France was the first country to introduce GST system in 1954.
- More than 140 countries have implemented the GST.
- The Genesis of GST occurred during the previous NDA Government under Atal Bihari Vajpayee Government when it set up the Asim Dasgupta committee to design a model for GST.
- The UPA Government took the matter further and announced in 2006 that this tax would be introduced from April 1, 2010. However, so far it was not introduced.
- All the GST bills including Constitution (101st Amendment) Act have been passed now and GST is set to come into force from July 1, 2017.
- GST would replace almost all vital indirect taxes and cess on Goods & services in the country.