LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

GST promises to be a buoyant source of future revenues: Economic Survey

For understanding the current revenue performance, the survey explained that it requires all the  taxes that the GST replaced from an all-India perspective.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
GST promises to be a buoyant source of future revenues: Economic Survey
Representational image of Indian Rupee and GST. Photo: Zeebiz
Written By: ZeeBiz WebTeam
Updated: Mon, Jan 29, 2018
04:22 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Economic growth more effective at poverty alleviation than inequality, says Economic Survey Economic growth more effective at poverty alleviation than inequality, says Economic Survey
Economic Survey: India bemoans global rating agencies sovereign assessment; Calls it unjustified Economic Survey: India bemoans global rating agencies sovereign assessment; Calls it unjustified
Economic Survey calls for higher public spending on healthcare Economic Survey calls for higher public spending on healthcare
Enhanced govt spending on healthcare to cut out-of-pocket spending: Economic Survey Enhanced govt spending on healthcare to cut out-of-pocket spending: Economic Survey
Economic Survey 2021: High food prices remained major driver of inflation in 2020 Economic Survey 2021: High food prices remained major driver of inflation in 2020

Clearing the confusion over the performance of Goods and Services Tax (GST), the Economic Survey 2018 today said the revenue collection under this regime is doing well.
 
The survey said, “Confusion, even anxiety, abounds about revenue performance so far after five months of collections under the new GST. This confusion is understandable given its newness and complexity.”
 
“Confusion has also arisen because of the attempt to view this through the narrow lens of the states or the center; of uncertainty about the build-up of balances in the IGST and their sharing; and of the fact that only 11 months revenues will be collected,” it added.
 
However, the survey believes that this uncertainty over GST will stabilize later this year.
 
For understanding the current revenue performance, the survey explained that it requires all the  taxes that the GST replaced from an All-India perspective.


 
As per the survey, VAT for the states, and the excise and service taxes as well as the countervailing duties/special additional duty (SAD) on imports together amounted to Rs 9.7 lakh crores in 2016-17.
 
From the data above, in the first five months of GST, the actual collections by categories are running at a rate of Rs 10.5 lakh crore (five-month average, annualized).
 
But at least two corrections need to be made to this number, the survey says.
 
First, CGST (The Center’s) collections are running well below SGST (The States’)collections (they should be identical by construction) because of a large stock of unutilized credit available in respect of the old excise and service tax. It is expected to decline over time.
 
While under steady state, "CGST collections should be close to SGST collections. Against this, we need to adjust the IGST for a much higher steady-state level of refunds, estimated at an additional Rs 50,000 crores."
 
The long-awaited GST was announced on July 2017, based on the  firm footing provided by the discernible improvements in most fiscal indicators such as revenue buoyancy, expenditure quality, tax devolution and deficits.
 
The survey says,"The GST was unveiled after comprehensive preparations, calculations and multi-stage consultations, yet the sheer magnitude of change meant that it needed to be carefully managed."
 
The government is navigating the change and challenges, including the possibility that a substantial portion of the last-month GST collections may spill over to the next year, the survey says.
 
Additionally, the growth in direct tax collections of the Centre has kept pace with the previous year and is expected to meet targets, with a growth of 13.7% while indirect taxes grew by 18.3% during April-November 2017.
 
Eventual outcome of indirect taxes, during this fiscal will depend on the final settlement of GST accounts between the Centre and the States.
 
Between April and November 2017, the states' share taxes grew by 25.2% - way higher than the growth in net tax revenue to centre at 12.6% of gross tax revenue at 16.5%.
 
Given the nominal GDP growth of 10.5% projected in the survey, buoyancy amounts to 1.14, above the historical buoyancy for indirect taxes of 0.9. In the initial phase of such a large disruptive change, this performance is noteworthy.
 
"The GST promises to be a buoyant source of future revenues," the survey added.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economic Surveyeconomic survey 2018Arun JaitleyFinance MinistryGSTGST collectionGoods and Services taxGST bill latest newsEconomyEconomic survey on GST
RELATED NEWS
Economic growth more effective at poverty alleviation than inequality, says Economic Survey Economic growth more effective at poverty alleviation than inequality, says Economic Survey
Economic Survey: India bemoans global rating agencies sovereign assessment; Calls it unjustified Economic Survey: India bemoans global rating agencies sovereign assessment; Calls it unjustified
Economic Survey calls for higher public spending on healthcare Economic Survey calls for higher public spending on healthcare
Enhanced govt spending on healthcare to cut out-of-pocket spending: Economic Survey Enhanced govt spending on healthcare to cut out-of-pocket spending: Economic Survey
Economic Survey 2021: High food prices remained major driver of inflation in 2020 Economic Survey 2021: High food prices remained major driver of inflation in 2020

LATEST NEWS

IIT Bombay releases GATE 2021 answer key—This is how you can check and raise objection

Indian economy 2021: With 0.4% GDP growth in 3rd quarter, country out of technical recession

Ind vs Eng: Jasprit Bumrah released from squad for fourth Test

Maharashtra board exams for Classes 12, 10 to begin on April 23, 29

Sovereign Gold Bond Scheme 2021: Issue Price fixed at Rs 4,662/gm

Google fires 150 game developers hired for Stadia: Report

7th Pay Commission: CONFIRMED! 3% DA, DR hike for government employees, pensioners of THIS state from March 1

Pensioners ALERT: RUSH! Last date to submit digital life certificate tomorrow—Avail doorstep service from SBI, PNB, BoB and other banks

Petrol, diesel prices on February 27: Fuel prices hiked again today—check rates in your cities

Covid 19 2nd phase vaccination drive from March 1: EXPLAINED! Who are eligible, required photo identity, advance self-registration—All you need to Know

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved