GST, stamp duty, electricity duty key growth drivers of revenue: Gujarat govt

The recently introduced Goods and Services Tax (GST) and state taxes such as stamp duty, electricity duty and vehicle tax are expected to help Gujarat government collect 18.5 per cent more tax revenues in 2017-18. The government expects its overall tax revenue to rise from Rs 83,278 crore in 2016-17 to Rs 98,749 crore as per the revised estimates for 2017-18.

The new estimates released on February 20, also include the share from central taxes, which is around Rs 20,782 crore — a rise of 10.34 per cent compared to Rs 18,835.34 crore as per the final figures for 2016-17. However, the state’s own tax revenue is expected to rise by almost 21 per cent to Rs 77,967.35 crore in the current fiscal from Rs 64,442 crore in the previous fiscal.

GST, which has replaced Value Added Tax (VAT) on most items, was one of the main sources to contribute to the rise in revenue collection this fiscal. The state government expects to collect State GST (SGST) revenue of Rs 25,000 crore during the current fiscal. Coupled with existing VAT on some categories, it is expected to add up to Rs 56,144 crore, or 56.86 per cent of total tax revenues. The corresponding figure last fiscal was Rs 46,313 crore for VAT, or 55.61 per cent of total tax revenues. The state will get another Rs 4,964.81 crore in form of Central GST (CGST) and Integrated GST (IGST).

Stamp Duty collection from sales of realty schemes is also expected to go up by 22.78 per cent, from Rs 5,782 crore to Rs 7,100 crore, by the end of the year. Moreover, collection from electricity duty levied on households, industry and commercial entities is expected to rise from Rs 5,833 crore to Rs 7,100 crore. Vehicle tax collection is also likely to grow faster at 32.28 per cent, from Rs 3,212 crore to Rs 4,250 crore.

However, the rise in revenue is expected to slow down in 2018-19. While VAT collection is likely to fall from Rs 31,144 crore to Rs 20,783 crore, total GST collection is expected to rise by 70.94 per cent to around Rs 51,219 crore. If we combine the collection from VAT and GST, the rise is expected to be 20 per cent, or Rs 12,000 crore.

For the next fiscal, collection from stamp duty, electricity duty and vehicle tax is pegged at Rs 8,380 crore, Rs 8,129 and Rs 4,794 crore, rise of 18.03 per cent, 14.5 per cent and 12.82 per cent, respectively.

Mahender Jethmalani, economist at Patheya Budget Centre said the rise in tax collection would allow the government to spend more on social sector.

Experts attribute the rise in GST collection to the increase in tax base after the roll out of the new tax regime. “The dealers registered under GST are more than those under VAT. Moreover, implementation of e-Way Bill and Reverse Charge Mechanism from April 1, 2018, will also boost revenue collection,” said Varis Isani, President of Gujarat Sales Tax Bar Association.

source:http://www.dnaindia.com/ahmedabad/report-gst-stamp-duty-electricity-duty-key-growth-drivers-of-revenue-gujarat-govt-2587694

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