CA in Jaipur | CA. Yogesh Jangid |ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases | https://www.nyca.in ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases Mon, 06 May 2024 05:07:00 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 https://www.nyca.in/wp-content/uploads/2022/08/9060CA_logo_icai-1.jpg CA in Jaipur | CA. Yogesh Jangid |ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases | https://www.nyca.in 32 32 Broaden GST Net, Cut Cesses: Boosting Revenue and Reducing Tax Burden https://www.nyca.in/broaden-gst-net-cut-cesses-boosting-revenue-and-reducing-tax-burden/ https://www.nyca.in/broaden-gst-net-cut-cesses-boosting-revenue-and-reducing-tax-burden/#respond Mon, 06 May 2024 05:07:00 +0000 https://www.nyca.in/?p=9248 Discover how decisive actions and reforms can enhance GST revenue, reduce tax burden, and propel economic growth. Learn about the latest surge in GST collections and the imperative need for GST reforms.

The post Broaden GST Net, Cut Cesses: Boosting Revenue and Reducing Tax Burden appeared first on CA in Jaipur | CA. Yogesh Jangid |ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases.

]]>

Introduction

India’s goods and services tax (GST) collection soared to a historic high, surpassing Rs 2.1 lakh crore in April. While this achievement is commendable, there are essential aspects to consider beyond the headline numbers.

Record GST Collection in April

April typically witnesses higher collections due to year-end adjustments in tax assessments. However, what sets apart the recent surge is the substantial increase of 12.4 percent compared to the previous year. This growth was primarily driven by robust domestic sales, particularly in premium sectors such as automobiles, consumer durables, and hospitality services.

Factors Driving April’s GST Collection

  • Year-End Adjustments: Year-end adjustments in tax assessments contributed to the significant increase in April's GST collection.
  • Growth in Domestic Sales: Healthy growth in domestic sales, especially in premium sectors, played a pivotal role in boosting GST revenues.
  • Impact of Decisive Actions: Decisive actions against fraudulent registrations, fake invoicing, and stricter compliance norms helped shore up revenues.

Outlook for Future Collections

While the April collection is promising, it’s anticipated that the average monthly collection may decrease in the coming months. However, sustained double-digit growth could surpass the budget targets for 2024-25, similar to the achievements in previous fiscal years.

Concerns Over GST-GDP Ratio

Despite the remarkable collection figures, one critical metric—the GST-GDP ratio—indicates room for improvement. While it rose from 5.7 percent in 2020-21 to 7 percent in 2023-24, there’s still significant potential for growth.

Simplifying the Tax Structure

Efforts to rationalize the GST rate structure and extend product coverage are imperative to enhance the GST-GDP ratio. However, concerns regarding the potential impact on household budgets and inflation must be addressed.

Improving Tax Administration

Enhanced tax administration and expedited dispute resolution mechanisms are essential to ensure smooth GST implementation.

Avoiding New Cesses

Authorities should refrain from imposing new cesses, which could escalate the tax burden and reduce state revenues.

Bringing More Products Under GST

Expanding the GST ambit to include products like petroleum, electricity, and alcohol could help lower the overall tax burden and streamline the tax regime.

Source: https://www.newindianexpress.com/editorials/2024/May/03/broaden-gst-net-cut-cesses-to-reduce-tax-burden

category

The post Broaden GST Net, Cut Cesses: Boosting Revenue and Reducing Tax Burden appeared first on CA in Jaipur | CA. Yogesh Jangid |ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases.

]]> https://www.nyca.in/broaden-gst-net-cut-cesses-boosting-revenue-and-reducing-tax-burden/feed/ 0 Gross Direct Tax Revenues for FY24 Experience Notable Growth of 18.74%, net direct tax at 19.88% https://www.nyca.in/gross-direct-tax-revenues-for-fy24-experience-notable-growth-of-18-74-net-direct-tax-at-19-88/ https://www.nyca.in/gross-direct-tax-revenues-for-fy24-experience-notable-growth-of-18-74-net-direct-tax-at-19-88/#respond Wed, 20 Mar 2024 05:05:05 +0000 https://www.nyca.in/?p=7748 During the recent Budget speech, Finance Minister Nirmala Sitharaman revised the projection for direct tax collections in FY24 to Rs 19.45 lakh crore, reflecting an increase from the initial estimate of Rs 18.20 lakh crore.

The post Gross Direct Tax Revenues for FY24 Experience Notable Growth of 18.74%, net direct tax at 19.88% appeared first on CA in Jaipur | CA. Yogesh Jangid |ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases.

]]>

During the recent Budget speech, Finance Minister Nirmala Sitharaman revised the projection for direct tax collections in FY24 to Rs 19.45 lakh crore, reflecting an increase from the initial estimate of Rs 18.20 lakh crore.

Gross Direct Tax Collections:

The provisional figures indicate an impressive growth of 18.74% in gross direct tax collections for FY24 compared to the previous fiscal year. Specifically, the gross collection of Direct Taxes (before refunds) reached Rs 22,27,067 crore, a substantial rise from Rs 18,75,535 crore in the corresponding period of FY23.

Net Direct Tax Collections:

Net direct tax collections from April 1, 2023, to March 17, 2024, experienced robust growth at 19.88%. The net collections amounted to Rs 18,90,259 crore, compared to Rs 15,76,776 crore in the corresponding period of the preceding financial year.

Composition of Net Direct Tax Collection:

The net direct tax collection of Rs 18,90,259 crore includes Corporation Tax (CIT) at Rs 9,14,469 crore (net of refund) and Personal Income Tax (PIT) including Securities Transaction Tax (STT) at Rs 9,72,224 crore (net of refund).

Advance Tax Collections:

Provisional figures of total Advance Tax collections for FY24 reached Rs 9,11,534 crore as of March 17, 2024, marking a significant growth of 22.31% compared to the corresponding period of FY23. Corporation Tax (CIT) accounted for Rs 6,72,899 crore, while Personal Income Tax (PIT) contributed Rs 2,38,628 crore.

Refunds:

Refunds totaling Rs. 3,36,808 crore were issued in FY24 until March 17, 2024, reflecting a notable increase of 12.74% compared to the previous fiscal year’s refunds of Rs. 2,98,758 crore.

Source: https://www.businesstoday.in/latest/economy/story/gross-direct-tax-collections-in-fy24-grows-at-1874-net-direct-tax-at-1988-422116-2024-03-19

category

The post Gross Direct Tax Revenues for FY24 Experience Notable Growth of 18.74%, net direct tax at 19.88% appeared first on CA in Jaipur | CA. Yogesh Jangid |ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases.

]]> https://www.nyca.in/gross-direct-tax-revenues-for-fy24-experience-notable-growth-of-18-74-net-direct-tax-at-19-88/feed/ 0