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.
