GST Creates 50% More Indirect Tax Payers: Economic Survey | CORPORATE ETHOS

GST Creates 50% More Indirect Tax Payers: Economic Survey

By: | January 30, 2018
gst bill

Jan 30: The implementation of Goods and Services Tax (GST) has led to a 50% increase in the number of indirect tax payers, besides a large increase in voluntary registrations, especially by small enterprises that buy from large enterprises and want to avail themselves of Input Tax Credits (ITC).

Arun Jaitley, Union Finance Minister informed Parliament that as on December, 2017, there were 9.8 mn unique GST registrants slightly more than the total Indirect Tax registrants under the old system. Among the new filers, business-to-business and exporters constitute the majority while Business to Consumer (B2C) transactions account for only 17%.

Maharashtra, UPL, Tamil Nadu and Gujarat are the states with the greatest number of GST registrants. UP and West Bengal have seen large increases in the number of tax registrants compared to the old tax regime. It also underlies that the distribution of the GST base among the states is closely linked to the size of their economies, allaying fears of major producing states that the shift to the new system would undermine their tax collections.