Under the new indirect tax regime, it is all set to cross 1 crore taxpayers in the coming two days which indicates a 25 percent increase in the number of taxpayers who were registered for the payment of multiple taxes such as VAT, excise duty and service tax. According to a government official “We will have one crore taxpayers in a day or two”.
By 25th December 2017, 99 lakh taxpayers were registered under the new tax regime, out of them approx 16.6 lakh taxpayers opted composition scheme under which they are liable to file returns once in three months without detailed invoices.
At the time of the implementation of the new indirect tax regime, about 80 lakh taxpayers were registered under multiple taxes such as VAT, excise duty and service tax. For example, the company could go for VAT registration and for excise and service tax.
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According to the sources, it is anticipated that the registered taxpayers can take one step back in the month of June due to the completion of one-year registration. Several numbers of people who had given commercial property on rent and registered under the new tax regime are likely to drop out from the GST. Whereas the tax base has enhanced, a large number of taxpayers are not paying any taxes saying that they have no liability. In the previous count, nearly 40 percent of the returns were filed by the taxpayers who had claimed no tax liability.
There are few companies in India which are paying taxes in an appropriate manner and a contributing to maximum tax collection
Waiving of late payment penalty and relaxation in filing returns further increased the problems of the government. Although there has been a lot of rush for filing returns in last three days, the previous filing returns are still pending. On Monday, the filings were close to six lakhs while on another day it was near about 1 lakh.
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