Altered financial planning and targets for FY 2019 still aspires for changes in tax collection practice and rather make it more desirous, especially for GST as per the Goldman Sachs Economics Research.
Despite the estimation that there is a cutback in the States’ contribution in the Centre’s taxes, the government is hoping high for the increment in a collection of customs duties and corporate taxes, to nullify the deficit of approx ₹1-lakh crore in GST expected.
“The FY19 Revised Estimate assumes a significant pick up in tax collection efforts in the last quarter, and a full year growth of 20 per cent, in order to be able to increase direct taxes by ₹50,000 crore relative to Budget Estimate. This may be possible to achieve following the strong performance last year, but nonetheless appears to be ambitious compared to historical averages,” a researcher mentioned.
To offset the negative balance of ₹1-lakh crore in GST, the government has finalized the following measures:
- Cross out of direct taxes which includes to a great extent of corporate taxes for say about ₹50,000 crore
- Increment in customer revenues by about ₹17,500 crore
- Abandoning the share of States in gross tax revenues by approx ₹27,000 crore than what was expected in the budget
A researcher holds a conservative approach for the shortfall of ₹1 lakh in GST, keeping in mind on an average requirement of ₹76,800 crore a month during the last quarter of the fiscal year, compared to recorded financial data of ₹45,500 crore till yet.
