Delivering the goods: on GST collections

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  Delivering the goods: on GST collections

Collections from the Goods and Services Tax crossed the ₹1 lakh crore mark in April, according to data released by the Finance Ministry on tax receipts that accrued(जमा/उपार्जित) in March but were payable in April. To be precise,(सटीक/विधिपूर्वक), the total revenue from the new indirect tax in April was ₹1,03,458 crore, the highest recorded in a single month since its implementation(कार्यान्वयन/अमल) in July 2017. Finance Minister Arun Jaitley has called this a “landmark achievement” and a “confirmation of increased(बढ़ाया हुआ) economic activity”. Separate data released last week suggest the number of registered tax-payers filing GST returns by the specified deadline has risen from 57% for July to nearly 63% for March. And since many had consistently(लगातार/दृढ़ता से) failed to meet the deadline in the initial months of confusion over the online returns filing system, it is heartening(शाबाशी करना/प्रशंसा करना) to note that by the final month of the financial year, they had caught up on their past arrears too. Overall tax compliance for July 2017 is now over 96% of registered taxpayers who are required to file, and ranges from 92% to 80% for each month thereafter, till December. Further simplification of the returns, hanging fire for a while now, must be expedited to improve compliance. Though it referred to the record GST collections as a sign of an upswing in the economy, the government, to be fair, also stressed(बल देना/प्रभाव डालना) that this number may be driven by the human tendency(मानव प्रवृत्ति) to wrap(सम्मिलित करना/छिपाना) up pending official dues at the last moment — which in this case is the last month of the financial year. Yet, even delayed compliance is a welcome ‘new normal’.

True, the revenue(आय/राजस्व) influx(अवाई/प्रवाह) in April cannot be taken as a firm trend for the future. But given the tumult the GST caused in its initial months and the fear of high evasion levels that gripped officials when revenues tumbled(गिर गया/गिरावट) after three months of ₹90,000 crore-plus collections, it is fair to say that the new tax system has ended its first three quarters on a robust(मजबूत/ठोस) note. By virtue(आधार पर/ख़ूबी) of just the April inflows, the average monthly collection has gone from ₹89,885 crore in the first eight months to over ₹91,300 crore. This number is important, as by the government’s own reckoning(गणना/हिसाब-किताब) the new regime(व्यवस्था/शासन-प्रणाली) needed to deliver about ₹91,000 crore a month to ensure that revenues lost by the Centre and the States under the earlier indirect tax system are covered. Fresh anti-evasion measures introduced in the past few weeks, such as the e-way billing to track movement of goods, could plug leakages to some extent(कुछ हद तक). The government is keen to start matching tax credits claimed by businesses for inputs from suppliers. While these should boost GST revenues in the new financial year, nothing will beat fiscal stress better than a sustained(निरंतर/स्थिर किया हुआ) revival in consumption and investment demand. Policymakers need to ensure that the uptick in car sales and demand for steel and cement is catalyses further.

 

Important Vocabulary

1.Accrued(जमा/उपार्जित)
Synonyms: accumulate, amass, collect, enlarge, flow
Antonyms: disperse, dissipate, spend, decrease, diminish

2.Increased(बढ़ाया हुआ)
Synonyms: expanded, heightened, elevated, enlarged, added on

3.Heartening(शाबाशी करना/प्रशंसा करना)
Synonyms: reassuring, cheering, promising, hopeful, likely

4.Wrap(सम्मिलित करना/छिपाना)
Synonyms: blanket, cloak, coat, fur, jacket

5.Influx(अवाई/प्रवाह)
Synonyms: arrival, incursion, inflow, introduction, invasion
Antonyms: retreat, departure

6.Robust(मजबूत/ठोस)
Synonyms: booming, hearty, hefty, potent, powerful
Antonyms: fragile, impotent, ncapable, ineffective, lethargic

7.Virtue(आधार पर/ख़ूबी)
Synonyms: advantage, character, ethic, excellence, faith
Antonyms: disadvantage, dishonesty, evil, imperfection, meanness

 

 

Credit To The Hindu News Paper

Collections from the Goods and Services Tax crossed the ₹1 lakh crore mark in April, according to data released by the Finance Ministry on tax receipts that accrued in March but were payable in April. To be precise, the total revenue from the new indirect tax in April was ₹1,03,458 crore, the highest recorded in a single month since its implementation in July 2017. Finance Minister Arun Jaitley has called this a “landmark achievement” and a “confirmation of increased economic activity”. Separate data released last week suggest the number of registered tax-payers filing GST returns by the specified deadline has risen from 57% for July to nearly 63% for March. And since many had consistently failed to meet the deadline in the initial months of confusion over the online returns filing system, it is heartening to note that by the final month of the financial year, they had caught up on their past arrears too. Overall tax compliance for July 2017 is now over 96% of registered taxpayers who are required to file, and ranges from 92% to 80% for each month thereafter, till December. Further simplification of the returns, hanging fire for a while now, must be expedited to improve compliance. Though it referred to the record GST collections as a sign of an upswing in the economy, the government, to be fair, also stressed that this number may be driven by the human tendency to wrap up pending official dues at the last moment — which in this case is the last month of the financial year. Yet, even delayed compliance is a welcome ‘new normal’.

True, the revenue influx in April cannot be taken as a firm trend for the future. But given the tumult the GST caused in its initial months and the fear of high evasion levels that gripped officials when revenues tumbled after three months of ₹90,000 crore-plus collections, it is fair to say that the new tax system has ended its first three quarters on a robust note. By virtue of just the April inflows, the average monthly collection has gone from ₹89,885 crore in the first eight months to over ₹91,300 crore. This number is important, as by the government’s own reckoning the new regime needed to deliver about ₹91,000 crore a month to ensure that revenues lost by the Centre and the States under the earlier indirect tax system are covered. Fresh anti-evasion measures introduced in the past few weeks, such as the e-way billing to track movement of goods, could plug leakages to some extent. The government is keen to start matching tax credits claimed by businesses for inputs from suppliers. While these should boost GST revenues in the new financial year, nothing will beat fiscal stress better than a sustained revival in consumption and investment demand. Policymakers need to ensure that the uptick in car sales and demand for steel and cement is catalysed further.

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