The data for tax revenue generated for the financial year 2017-18 has been released and the increase in tax revenue post-GST implementation has not met the expectation of the Delhi government. As per the data, proceeds from the GST jumped by 12% (2,757 Crore) which is not substantially different from the increase in annual tax revenues recorded during the erstwhile VAT regime. The Delhi Government has its hopes pegged on the e-way Bill now.
Reportedly, the Delhi government was expecting a growth in tax revenue to the tune of 5000 crores for the FY 2017-18. However, the total proceeds from SGST for the last financial year stood at 26,337 crores against the expected 29,000 crores. In view of the decline in recovery, the state tax department had already brought revised budget estimates to 26 thousand crore rupees. Despite this, the Department for State Finance and Planning had high hopes from the final quarter of the last FY 2017-18. But the departments hope of a miracle were met only with disappointments.
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As an aftereffect, the 12% increase in state GST proceeds against the 14% increase in Gross State Domestic Product (GSDP) could be a reason of concern for the State Finance and Planning department. The small difference between proceeds and GSDP could force the Delhi Government to tighten their hands on some its populist schemes. As an immediate measure to increase tax revenues and avoid such shortfalls in the current fiscal year, the Government will strongly implement the mandatory e-waybill system for interstate goods entering and leaving the national Capital Territory. The e-Way bill was re-launched on April 1st. Reportedly, the first launch was marred by technical issues and crumbled under high traffic in the GSTN Network.
Further, Mr H. Rajesh Prasad, The GST Commissioner, also stressed on the use of e-Way bills by transport vehicles. The GST Commissioner said that e-way bill would be strongly implemented. It is necessary for all vehicles carrying goods in and out of Delhi to furnish proper e-Way bill. A Team of Officials has been appointed to identify and take strict actions against those transporters who refrain from generating e-way bills.
