Uttar Pradesh Chief Minister Yogi Adityanath has rapped the state's commercial tax officials for failing to expand the Goods and Services Tax (GST) net, which was reflecting in lower tax collections.
Currently, only 1.4 million traders are registered under the GST. The CM stressed that the number needed to increase to 2.5 million by next financial year.
Chairing a meeting of tax officials last evening, the CM has set the target of Rs 1 trillion of GST mop-up in 2020-21 compared to Rs 77,640 crore in the current 2019-20 fiscal. Further, he directed for taking tough measures to curb tax evasion, including any connivance by the department personnel.
According to ‘Koshvani’, the UP government’s interface for tax and non-tax revenue statistics, the commercial tax/GST/Value Added Tax (VAT) collection during the first 7 months (Apr-Oct) of 2019-20 stood at Rs 22,622 crore compared to Rs 25,690 crore in 2018-19, thus showing a dip of Rs 3,068 crore or nearly 12 percent year-on-year.
The CM instructed officials to accelerate the pace of tax collection, so that the target of the current financial year could be met even as he stressed the importance of taxes for implementing the various projects and programmes aimed at public welfare.
Meanwhile, the tax department will also launch an extensive campaign to onboard traders for GST. Adityanath has advised the commercial tax department to establish working relationship with newly constituted UP Traders’ Welfare Board in this regard. He warned officials against the harassment of bona fide traders.
Earlier, state finance minister Suresh Kumar Khanna had also expressed concern over lower tax and non-tax mop-up in the state. In fact, the government continues to explore newer streams of revenue to fill its coffers ahead of the 2022 state elections.
For example, the government had decided to levy cess on sand import from Madhya Pradesh, while the proposal to start the auction of stone quarries was being considered.
In 2019-20, UP is targetting total tax mop-up, including commercial tax, of Rs 1.4 trillion, 4.4% more than the revised budgetary estimates of Rs 1.34 trillion during 2018-19 financial year.
In 2019-20, the state government has projected total revenue kitty of Rs 3.91 trillion, including tax and non-tax revenue, both emanating from state and its share from tax and non-tax revenue of the Centre, apart from the central grants of Rs 68,000 crore.
Of net tax revenue of about Rs 2.93 trillion, Rs 1.4 trillion would accrue from own resources, while Rs 1.53 trillion would come as the state’s share in the central taxes.
According to UP Budget 2019-20, tabled in the legislature on February 7, 2019, the state has estimated kitty of Rs 77,640 crore from State GST (SGST) and VAT, while excise purse has been pegged at Rs 31,517 crore.