The government is expecting that the registrations in the new indirect tax regime will increase by 90 lakh up to one crore by the end of the financial year. Multiple complex levies under VAT such as excise, service tax are replaced in the new regime once GST implemented successfully. That means the total registrations of previous tax regime down from 86 lakh to nearly 70 lakh, said official sources in a statement.
As per Time of India Reports, those businesses and sectors which have kept away from the tax net such as textile sector will push up the registrations nearly by 10 million or 1 crores. If the expectations of the government fulfill, then the number of taxpayers could be increased by 28% (in the case of 90 lakh registrations) and 40% (in the case of 1 crore registrations). Till now 10 Lakh new taxpayers have enrolled under the Goods and Services Tax Regime (GST) which is remarkable for the country.
“The figure of new registrations approved in GST crosses 10 lakhs today. About two lakh applications pending in the process,” Revenue Secretary, Hasmukh Adhia, Tweeted on Saturday.
According to Sources, figures of new registrations may increase when businesses have time to register at GST Network (GSTN). For smoother filing of GST, the GSTN is working on the Information Technology (IT) platform.
Frequently rise in new registrations in the new indirect tax regime brings cheer to policy-makers who were expecting an increase in the tax base. Broadens tax base and enhance growth are the two major benefits of newly implemented Goods and Services Tax Regime (GST) identified by the Government.
Removal of cascading effect, transparency, and accountability in business operations, and improvement in ease of operating business are some of the long term and immediate benefits of Goods and Services Tax (GST) Regime.
The economists were positive on the behalf of extended tax base of 8 to 9 lakhs out of 12 lakhs newly registered taxpayers files return. They said that this will improve the tax base directly and will also help to squeeze any tax evading practice.
After the introduction of GST, the Government is expecting that it will broaden the tax base. As per the figures, it is predicted that it will increase by 20- 25 % in the indirect tax regime.
Union Finance Minister Arun Jaitley said in Chennai, “This gives us comfort that there is a horizontal expansion of the base. This will also lead to greater compliance.”
Goods and Services Tax Regime is familiar with the GST. It has implemented on 1st July across the country and replaces several complicated taxes including VAT, excise, octroi and service tax.