Friday, 24 September, 2021

India expects very robust tax revenue this fiscal

NEW DELHI: The government is expecting a “very, very robust” tax revenue in the current fiscal on the back of better-than-expected corporate sector performance, Revenue Secretary Tarun Bajaj said on Wednesday.

Acknowledging that high GST rates are impacting the automotive sector, Bajaj said the GST Council would look at solutions to bring down rates which are very high, take out certain items from the tax-exempt category and correct the inverted duty structure, report agencies. “When I look at the current first quarter, the results have started coming and (tax) revenues have also started coming. The first advance tax is over, the TDS date is coming and going, I see a very, very robust tax revenue that is coming.

“It is not that we have increased the taxes, or we have become more intrusive and we are coming to you asking to pay more taxes... the happy thing behind this is, perhaps the corporate sector is doing better than what we had anticipated it to. So, it is a very good thing for the economy,” Bajaj said at a CII annual session here.

The net direct tax collection in the April-June quarter of the current fiscal stood at over Rs 2.46 lakh crore, as against over Rs 1.17 lakh crore collected during the same period last fiscal (2020-21).

Net Indirect Tax (GST and Non-GST) revenue collection in the June quarter of current fiscal was at Rs 3.11 lakh crore.

Net GST collection during the quarter was over Rs 1.67 lakh crore, which is 26.6 per cent of the budget estimate of Rs 6.30 lakh crore for full 2021-22 fiscal. The net GST collection includes Central GST + Integrated GST + Compensation cess.

With regard to Goods and Services Tax (GST), Bajaj said there are a lot of items on which tinkering of tax rates might be needed, but there is a need to first stabilise the regime.

“On tax rates, I quite agree when you talk of the automotive sector. You are talking about two-wheelers, but I would say on the four-wheelers we not only charge 28 per cent, but also charge cess which is much more and as I see it, it will continue for a few more years.

“All that has a negative impact on the industry. I acknowledge that, but I don’t know how to solve that issue,” Bajaj said.

He further said that although GST rates have come down at macro level, there was a need to look at solutions to bring down rates which are very high.

“Rates have come down at macro level, yes, in a few sectors they may have gone up. But we have to look at solutions to bring down rates which are very high and take out certain items which are under exempted items, inverted duty structures, we need to do that and I’m sure, in the coming GST council meeting when we give this agenda, I am sure we will be able to get those things,” the Secretary added.