Despite the fact that Bhiwadi is one of the small towns of Alwar in Rajasthan, having the total population of barely one lakh, has become a key contributor in government revenue by giving 12 per cent of the total GST accumulation from Rajasthan in the state treasury. After the commencement of the GST regime, Bhiwadi has become a development station for tax collection in Rajasthan, let us check some developments through these points:
- The increment of CGST in Bhiwadi industrial area by 167%
- Bhiwadi has contributed Rs. 3991 crores GST to the Centre & Rs. 717.18 crores to State and hence a total of Rs. 4708.32 crores to Government revenue treasure in the last one and a half year
- On average, about Rs. 2000 crore GST deposits are collected every month from Rajasthan which includes Rs. 260 crores from Bhiwadi.
- From March 2016 to June 2017, Bhiwadi was adding Rs 1490.94 crore as the central excise and service tax to the Central Government.
- After the implementation of GST in 2017, tax increased to Rs 2500.02 crores which was recovered from 4500 units and other industries located in Bhiwadi.
- In the month of December, Bhiwadi generated a total of 234.26 crores of tax which sums up SGST, CGST, and IGST.
GST has led to transparency in trade and tax that is why the tax has increased in 18 months.
Division of Bhiwadi in Two Parts:
Implementation of GST has divided Bhiwadi into two sections:
- C division – covers units of Bhiwadi industrial area and some small-scale businessmen
- D division -some areas of Tapukada, Khanshekha, and Kahani.
C division generated revenue of Rs 1832.09 crores while D division generated total revenue of 2876.23 crores in the last 18 months.
The increment in tax revenue after the implementation of GST, the tax slabs got increased which increased the taxes. For example service tax which was 15 %, now comes in the tax slab of 15 -18 %, similarly inter-state central sales tax was previously based on Form C which contained 2 % tax but now it comes in the slab of 5 -28% under IGST. Apart from this, prior GST the tax was paid at the time of production & now under the GST, the tax payment is made at the time of sale.
Top Five Highest Tax Paying Units of Bhiwadi:
- Honda Cars India Limited – 47.60 million,
- Honda Motorcycles and Scooters Private Limited – 28.72 crores,
- Jaguar & Company Private Limited – 11.13 crore,
- FCC Clutch India Pvt. – 6.65 crores,
- St. Gobain India Pvt. Ltd. – 5.44 crores
Experts on GST
Chartered accountant Ashish Yadav appreciates the growth and development which took place after GST implementation and informs about the increment in the limit from 20 lakhs to 40 lakhs for the GST registration which is implemented from 1st April. As a result, a large section of businessmen will be out of the realm of GST but the increased production in the industrial units is within the purview of GST.
GST has brought uniformity in the tax system. There are mainly three categories in GST: SGST (State Service and Commodity Tax), CGST (Central Service and Commodity Tax) and IGST (Inter-Services and Commodity Tax).
For example, if any industrial unit produces a product, these three types of tax are applied on the product- SGST state government, CGST Central Government and IGST( where the state and the central government takes 50-50% of IGST). Before GST, the producers and the customers had to undergo many tax-related disputes and tax has to be paid in different ways and for every item.
