‘GST to boost manufacturing, attract foreign investments’

Source: The Hitavada      Date: 02 Jul 2018 11:05:23


 

 

Business Bureau

THE Government launched a new revolutionary indirect tax system -- Goods and Services Tax (GST) on July 1, 2017 which has successfully completed its first year. “Due to the strong determination and leadership, motivated role played by tax officers, support and co-operation of trade and industry, the CGST Nagpur Zone garnered revenue of Rs 12,772 crore in FY 2017-18, which is a remarkable achievement,” said A K Pande, Chief Commissioner, CGST, Nagpur Zone while speaking at a programme to celebrate the first anniversary of ‘GST Day’ at GST Bhavan, Civil Lines on Sunday.


In Nagpur Zone, compliance of returns filing touched 64 per cent compared to 55 per cent in entire Maharashtra. The issue of registration under GST has been resolved to a larger extent through the Central Processing Cell which provided registration to about 77,000 new tax payers. “As on date, an average 5,000 new taxpayers are getting registered on a monthly basis. The tax base has shown growth of 20 per cent in one year when compared to pre-GST regime,” Pande said.


About 75 to 80 per cent of the goods are taxed below 18 per cent as against 35 to 40 per cent under the old regime providing relief in the form of lower tax to consumers. Trade should pass on the benefits of reduced taxes to consumers rather than increasing their profit. The Anti Profiteering Authority has already come into existence watching such cases very closely, he pointed out. Once the compliance increases and return filing crosses 90 per cent, Government may consider further reduction in tax rates and slabs,” Pande said.


“GST is not only unification of taxes but aspires to achieve various economic goals like promoting manufacturing, boosting exports, creating more jobs, attract foreign investments, cutting down tax evasion and lowering compliance cost to businesses. Information Technology (IT) has replaced human interface and some economic indicators like consumption, production, inflationary pressures, compliances and tax buoyancy are slowly turning positive, he said.


The greatest advantage of GST is that it encourages voluntary compliance which facilitates smoother and simpler tax regime. GST Council has proposed to simplify the return making it a single return called ‘fusion return’ which will contain all features of GSTR-1, GSTR-2 and GSTR-3 or GSTR-3B,” he added. On the occasion, as a token of appreciation CGST, Nagpur Zone felicitated 10 officers for their immense contribution in resolving the toughest issues of GST. The chief guest, Dr Lokendra Singh, Director of CIIMS said that the country had created history as one of the biggest tax reforms was successfully implemented on a massive scale. “India’s GST is unique as it was one of the best examples of federal cooperation between the Centre and states in interest of the country,” he said.


The guest of honour, Prof Vinayak Deshpande, Acting Vice-Chancellor of RTMNU said that GST should include fuel, real estate, electricity and alcohol within its ambit. Even after one year of GST there were challenges like bringing down tax slabs, IT in rural areas, improve refund filing system, control tax evasion, check inflation, increase income levels, reduce NPAs, create jobs, improve economic activities and restrain widening fiscal deficit.
B C Bhartia, National President of CAIT said that the biggest challenge was bringing about awareness among 7 crore traders to adopt the new tax regime which was not an easy task.


Atul Pande, President of VIA said that the first year of GST was a year of learning for all stakeholders. VIA being an apex trade and industry body on its part worked shoulder to shoulder with GST officers and conducted GST awareness workshops in all districts of Vidarbha. The feedback to the GST Council was well received as it introduced about 300 amendments. Prominently present were Sanjay Rathi, Commissioner, CGST, Nagpur-II, Ashish Chandan, Commissioner, CGST, Nagpur-II, Nitin Lonkar, President of BMA, CA Milind Kanade, Secretary of BMA, CA Umang Agrawal, Chairman of ICAI, Nagpur Branch, CA Kirit Kalyani, CMA Y P Sah, Chairman, ICAI Nagpur Chapter, CMA Anil B Verma, Secretary, ICAI Nagpur Chapter and others.