GST: Direct, indirect tax collections fall short of FY20 targets
At a time when the government is mulling to announce measures to revive the economy, revenue collections for FY20 have fallen short of estimates.
According to government sources, who did not wish to be named, both direct and indirect tax collections have witnessed a significant fall.
It was only in the last 10 days of March when the economic impact of the pandemic was seen, they said.
“Direct tax collections have slipped by Rs 1.2 lakh crore. The direct tax collections for FY20 have frozen at Rs 10.50 lakh crore against the target of Rs 11.70 lakh crore.”
The direct tax legacy dispute resolution scheme — Vivad se Vishwas — is open till 30 June, 2020. The government has planned to count receipts from the scheme in the last financial year.
But due to the coronavirus pandemic, CBDT officials said that the scheme might not gather pace in tax collections as people would not like to shell out cash to settle their claims at this time.
On indirect tax collection front too, the revenue mop-up is not very promising. Goods and services tax (GST) has also not yielded much revenue.
GST collections for the month of March 2020, reported on May 5, stood at Rs 61,540 crore as against the target of Rs 1.25 lakh crore.
Revenue secretary had tasked the GST wing to ensure that in the last month of the year, which is March, which also the highest tax revenue yielding month traditionally, to collect Rs 1.25 lakh crore.
In FY19, GST collections in March 2019, reported in April 2019, were the highest ever since GST kicked in, at Rs 1.13 lakh crore.
After the government had announced a nationwide lockdown from March 25, the finance ministry had extended the GST filing deadline from earlier April 30 to May 5 without any interest or penalty.
With revenue shortfall in the last fiscal, North block is already gearing up to the task of exploring new revenue augmentation measures to fill up the gap in the current fiscal.
The revenue department has already started an internal exercise to pull up the collections.
“Revenue Secretary has asks CBDT and CBIC to suggest 5 key measures each which could revive the revenue collections,” the sources added.
The government is also likely to revise its budget estimates of direct and indirect tax collections for FY21, considering the economic impact of COVID–19.However, government officials told CNBCTV18 that “The Revenue department will look at revisions of targets closer to the month of June, after the government assessed the full impact of the pandemic.”
The post GST: Direct, indirect tax collections fall short of FY20 targets appeared first on GST Station.
Click here for more...
from #Bangladesh #News aka Bangladesh News Now!!!