GST: Will use property tax knowledge, electrical energy invoice to extend GST base: CBIC Chairman

When GST was carried out, there was a GST tax base of Rs 45-50 lakh, which has now elevated to Rs 1.4 crore, stated Johri. The CBIC Chairman added, “We really feel that there’s a good scope for rising the tax base. We are going to take the assistance of energy distribution firms, take the info of electrical meters and also will use the property tax knowledge to extend the tax base of GST.”

In an unique interview with ANI, the CBIC Chairman stated the board’s technique concerning GST is that gathering income is its goal, together with that it is usually crucial to extend the tax base.

“Once we have a look at different tax bases, the variety of GST taxpayers may be very much less. We wish to enhance this in a really systematic and scientific approach, by which we’ll use analytics,” Vivek Johri stated.

“On this Finances, the Finance Minister has introduced that PAN shall be thought of as a standard enterprise identifier. This may assist us. We are going to take the assistance of distribution knowledge of energy distribution firms. We may also use the property tax knowledge,” he stated.

Johri stated that for instance, property tax has two kinds of knowledge — business and residential and “if we see the bottom of economic properties, particularly in huge cities, it provides us an thought that there’s some business use at such and such deal with.”

He additional stated, “If we confirm that deal with from PAN database, then we might come to know that he’s already registered in earnings tax and from their database we’ll know what sort of enterprise he’s doing.”On this approach, Johri stated in the event that they have a look at the databases by filtering slowly in an clever approach, then an estimate might be made on “who’re our potential future taxpayers which aren’t but in our GST tax base”.

Responding to a query about business-to-consumer (B2C) shopkeepers whose each day gross sales are in lakhs however should not giving receipts and do enterprise in money, Johri stated that B2C enterprise is a matter of concern.

He stated there have been some sectors which CBIC has to determine, “Merchants who’re in such a sector who promote items in money and don’t give payments, and due to this, there’s a lack of GST. We should focus on with them how we are able to change this behaviour. This must be modified as it isn’t within the curiosity of the nation and the society. Whether or not it’s the central authorities or the state authorities, we’re contemplating the taxable actions.”

He additionally stated that they might take this work ahead in some sectors, “There was an experiment in some states, concerning VAT (worth added tax) that in case you pay the invoice, we’ll draw a lottery on the premise of that invoice, in order that the shoppers are inspired they usually come ahead and ask for the invoice.”

The Chairman additional stated, “We’re additionally attempting to deal with this by way of our taxpayers’ companies. We’re working commercials; states are additionally doing this to alter shopper behaviour.”

He stated each the patron in addition to the taxpayers must change.

“We’ve to work on B2C. We are going to finalise this by sitting with the states,” Johri stated, including that, “Aside from that, we wish to clarify our potential taxpayers about the advantages which they may get by becoming a member of GST. For instance, there’s a big good thing about an enter tax credit score. There’s a big good thing about increasing their market.”