Over two months after Jammu and Kashmir came under the ambit of Goods and Service Tax (GST) regime, Finance Minister Haseeb A Drabu today held a review meeting on Revenue Collection for 2017-18 and Projected Revenue for 2018-19.
The minister, according to an official statement was informed, in 2017-18, under Sales Tax/VAT (SGST from July 8, 2017), Revenue Target has been set as Rs 6384.91 crore while Revenue Realisation ending July 2017 was Rs 2284.92 crore. Expected Revenue Realisation from 08/2017 to ending 03/2018 is Rs 3909.36 crore while total Expected Revenue Realisation 2017-18 is Rs 6194.28 crore. Revenue realisation for 2016-17 was Rs 4662.15 crore.
Total Revenue Target has been set at Rs 7800 crore for 2017-18 while Revenue Realisation ending July 2017 was Rs 2945.53 crore. Expected Revenue Realisation from 08/17 to ending 03/2018 is Rs 5072.34 while Expected Revenue Realisation for 2017-18 is Rs 8017.17 crore. Revenue Realisation for 2016-17 was Rs 6224.08 crores.
For 2016-17, Revised Target for Sales Tax/VAT was set at Rs 6550 crores with Revenue Realisation of Rs 6224.08 crores. Revenue Realisation for 2015-16 of Rs 5515.96 crores.
The minister was also informed that under SGST, Expected Revenue (ER) Realization for 2018-19 has been set at Rs 6194 crores while Projected Revenue (PR) is Rs 7061.47 crores. For Liquor and ATF, ER has been set at Rs 407.14 crores while PR is Rs 463 crores.
"On Motor Spirit and Diesel Oil Tax, ER is Rs 1183.44 crores and PR is Rs 1350 crores. Passenger Tax ER is Rs 13.32 crores and PR is Rs 15 crore while ER on Stamps and Registration has been set at Rs 219.69 with PR of Rs 300 crore," officials said.
Drabu said although the new system of indirect taxation has shaken the system which will take some more time to stabilise, the Commercial Taxes Department must organise training programs and identify points for filing of tax returns for the ease of businesses. The Finance Minister directed the CT Department to constitute a couple of teams for Srinagar and Jammu to see how the GST regime is being implemented by traders in markets,
"A separate exercise must be run to calculate the cost of collection of taxes so that the Finance Department can allocate resources proportionately. It is time to reform our financing structure and ensure that the customers in J&K purchase goods at lowest price, yet the manufacturer doesn't face losses," Drabu said.
The Finance Minister asked the CST Department to file a report on Benami licenses within one week and ensure that the PAN and other relevant information is seeded with the license holders. He directed the officials to stop the export of unfinished willow bats to outside states by misbranding without proper taxing system in place.
Drabu also urged the officers to increase source money in order to increase detection of evasion of taxes through informal system of checking, "You must create a lucrative incentive structure for employees who help in detecting evasion of taxes," he said.
The Finance Minister said post GST, there should be a larger debate on inter- and intra-state Toll collection while Toll Posts should become 'Data Collection Point' for the Government rather than Toll collection.
"Travel to and business in J&K must become hassle-free so that the State attracts more investment. Also, a proposal must be prepared for providing insurance policy for employees posted at Lakhanpur Toll Post, including employees of Finance, Police, Labourers, etc who are exposed to harsh working conditions," he said.