Lok Sabha Question No. 193 (STARRED), answered on 2021-08-02
Subject: Revenue Collection
Ministry: FINANCE
Asked by: Satyadev Pachauri

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA STARRED QUESTION NO. *193

TO BE ANSWERED ON MONDAY, AUGUST 02, 2021 SRAVANA 11, 1943(SAKA)

## REVENUE COLLECTION

- *193. SHRI SATYADEV PACHAURI: Will the Minister of Finance be pleased to State: (a) the total revenue collected in the country from various income sources during the last five years; (b) the percentage of income collected as revenue, year-wise; (c)  the  decline in revenue collection in percentage during the last three years, yearwise; (d) whether the Government is concerned about the decline in revenue collection; and
- (e) if so, the plan of the Government in this regard?

## ANSWER MINISTER OF FINANCE (SMT. NIRMALA SITHARAMAN)

- (a) to (e) A statement is placed on the Table of the House.

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## Statement as referred to in reply to Starred Question No. *193 to be answered on 2 nd August, 2021 in Lok Sabha on the subject Revenue collection.

- (a)  &  (b):  The  total  revenue  collected  from  taxes  and  non-tax  sources  during  the  last  five years are as under:

(₹ in crore)

| Sr. No   | Particulars                                          | 2016-17   | 2017-18   | 2018-19   | 2019-20   | 2020-21 (Prov.)   |
|----------|------------------------------------------------------|-----------|-----------|-----------|-----------|-------------------|
| I        | Tax Revenue                                          |           |           |           |           |                   |
| (a)      | Corporation Tax                                      | 484924    | 571202    | 663572    | 556876    | 457180            |
| (b)      | Taxes on Income including other taxes and Wealth Tax | 364790    | 430835    | 473044    | 492674    | 486153            |
| (c)      | Customs                                              | 225370    | 129030    | 117813    | 109283    | 134756            |
| (d)      | Union Excise Duties                                  | 382094    | 259431    | 231982    | 240615    | 389662            |
| (e)      | Service Tax                                          | 254499    | 81228     | 6904      | 6029      | 1615              |
| (f)      | GST                                                  | --        | 442561    | 581559    | 598749    | 551222            |
| (g)      | Others                                               | -2304     | 1206      | 3792      | 3355      | -1558             |
| (h)      | State's share(-)                                     | -608000   | -673005   | -761454   | -650678   | -594997           |
| II       | Net Tax Revenue                                      | 1101372   | 1242488   | 1317211   | 1356902   | 1424035           |
| III      | Non-Tax Revenue                                      | 272831    | 192744    | 235704    | 327157    | 208059            |
|          | Total Revenue (II+III)                               | 1374203   | 1435232   | 1552915   | 1684059   | 1632094           |

(c): The detail of the growth/decline in revenue during the last three years is as under:

| Financial Year   |   Net Collection (Tax Revenue + Non-Tax Revenue) (₹ in crore) |   Y-O-Y growth (in %) |
|------------------|---------------------------------------------------------------|-----------------------|
| 2018-19          |                                                       1552915 |                  8.2  |
| 2019-20          |                                                       1684059 |                  8.45 |
| 2020-21          |                                                       1632094 |                 -3.09 |

- (d) & (e):The government has taken many steps to boost both direct and indirect tax revenue collection, through curbing tax evasion, widening/deepening of tax base, promoting voluntary compliance, reducing litigation and promoting digital transaction. The details of these steps are at Annexure .

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## DIRECT TAXES

## I. Government has taken step  to  curb  tax  evasion  and  widen  and  deepen  the  tax base

-  Tax  deduction  at  source  (TDS)  and  Tax  Collection  at  Source  (TCS)  scope  has  been widened by including new transactions like foreign remittance, purchase of luxury car, ecommerce participants, purchase/sale of goods, acquisition of immovable property, etc.
-  TDS/TCS for non-filers and for non-PAN cases have been increased.
-  Equalisation Levy at 6% for online advertisement and at 2% for sale of goods/provision of services through e-platform, has been introduced.
-  Quoting  of  PAN  has  been  mandated  and  linking  of  PAN  and  Aadhaar  has  also  been made compulsory.
-  Black Money Act has been enacted and Benami Act has been operationalized.
-  Various amendments have been made in the Income-tax Act to curb tax evasions.

## II. Government  has  promoted  voluntary  income-tax  compliance  through  easing  of compliance for taxpayers

-  No ITR for senior citizen above 75, if no income other than pension and interest income in the same bank.
-  Faceless  assessment,  faceless  appeal  and  faceless  penalty  schemes  have  started  to promote transparent, efficient and accountable income tax administration.
-  Time limit for completion of income tax proceedings has been reduced.
-  CPC  2.0  and  E  filing  2.0  have  been  launched  to  provide  better  interaction  with taxpayers.
-  Taxpayer charter has been adopted to respect taxpayer's rights and make them aware of their obligation.
-  Document Identification Number has been introduced to promote transparency.
-  Pre-filing of returns has been introduced to facilitate easy and accurate filing of incometax return.
-  Form 26AS has been redesigned to give more information to taxpayers enabling correct income tax return filing.
-  Many compliances have been reduced.
-  Threshold  limit  for  small  trusts  for  exemption  from  registration/approval  has  been increased from 1 crore to 5 crore .
- III. Government has taken steps to reduction litigation
-  Vivad se Vishwas  scheme  has  helped  in  reducing litigation. Total of 1,32,353 declarations have been received under the scheme covering tax arrears of Rs 99,756 crores.
-  Monetary  limit  for  filing  appeal  have  been  increased  resulting  in  less  litigation  from department's side.
-  Finance Act 2021 has introduced Dispute Resolution Committee for easy resolution of tax disputes.

## IV. Government has taken steps to promote digital transactions to create less cash economy

-  Threshold  for  tax  audit  has  been  increased  to  10  crore  where  95%  transaction  in business are in non-cash mode.
-  TDS on cash withdrawal above a threshold has been introduced
-  Presumptive tax rate for small business has been reduced, if business is through digital transactions
-  Business  over  50  crore  of  turnover  has  been  mandated  to  provide  non  fee  based electronic mode of payment
-  Threshold limit for cash transactions has been reduced.

## INDIRECT TAXES

Government  has  made  concerted  efforts  to  raise  tax  revenue  collections.  Customs exemptions  have  been  rationalized  over  the  last  few  years  and  a  large  number  of  exemptions have  been  removed.  Further,  certain  policy  change,  extensive  application  of  RNS,  institutional mechanism of audits in customs etc. have helped in garnering additional revenue. Central excise duty is contributed largely by Petrol and Diesel which has witnessed growth in revenues.

Government is taking all possible steps to increase GST collection which includes GST rate rationalization to improve tax compliance, e-invoice system, mandatory e-filing and e-payment of taxes, penalty for delayed payment, extensive use of third-party sources such as State VAT Department,  Income  Tax  etc.  for  compliance  verification,  regular  enforcement  &  compliance verification of tax returns, taxpayer education and media campaign etc.

Concerted  efforts  have  been  made  to  improve  tax  compliance.  System  based  analytical tools and system generated red flag reports are being shared with Central as well as State Tax authorities  to  take  action  against  tax  evaders.  E-way  bill  squads  have  been  activated  for  the purposes of random verification of the goods in transit. Rule 138E of the CGST Rules, 2017 has been amended which provides that when a taxpayer fails to file his or her GST returns (GSTR3B) for two continuous months, he or she will get blocked from generating an e-way bill. A new rule 36(4) has been inserted in CGST Rules, 2017 which puts a restriction that the ITC availed by a taxpayer shall not exceed 105 per cent of the eligible credit.

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