Lok Sabha Question No. 1013 (UNSTARRED), answered on 2024-12-02
Subject: Revenue Growth
Ministry: FINANCE
Asked by: Shri Raju Bista

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA UNSTARRED QUESTION NO. 1013

TO BE ANSWERED ON MONDAY, DECEMBER 2, 2024 AGRAHAYANA 11, 1946 (SAKA)

## REVENUE GROWTH

## 1013. SHRI RAJU BISTA:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government's fiscal policies have contributed to the projected 8-10%   revenue growth for India;
- (b)  if  so,  the  details  of  factors  driving  this  growth,  particularly  the  13-14%  increase  in  State  GST collections;
- (c) whether the Government's efforts to improve tax compliance and formalize the economy have led to increased tax devolution to States particularly West Bengal;
- (d)  if  so,  the  specific  measures  taken  to  enhance  the  overall  tax  collection  and  ensure  equitable distribution to States particularly to West Bengal; and
- (e)  the  steps  being  taken  by  the  Government  to  mitigate  potential  risks  from  global  economic volatility and support States in maintaining their revenue growth trajectory?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI PANKAJ CHAUDHARY)

(a)  to  (e):  India  has  seen  consistent  revenue  growth.  Details  of  Central  Net  Indirect  Tax  Revenue Collection and Net Direct Tax Collection for the last six years are as follows:

(Rs  In crore)

| Financial Year   | Central Net Indirect Tax Revenue   | Net Direct Tax Collection   |
|------------------|------------------------------------|-----------------------------|
| 2018-19          | 9,37,321                           | 11,37,718                   |
| 2019-20          | 9,53,513                           | 10,50,681                   |
| 2020-21          | 10,74,810                          | 9,47,176                    |
| 2021-22          | 12,89,662                          | 14,12,422                   |
| 2022-23          | 13,81,935                          | 16,63,686                   |
| 2023-24          | 14,95,853                          | 19,60,166                   |

Tax Devolution to states including West Bengal has been increasing due to efforts of the Government to improve tax compliance and formalize the economy. The tax devolution to states including West Bengal from FY 2021-22 is at Annexure 'A'.

Major Policy measures taken to enhance the overall tax collection are as follows:

-  Simplification  of  the  Personal  Income  TaxFinance  Act,  2020  simplified  the  filing  of Income Tax Returns by providing an option to individual taxpayers for paying income-tax at lower slab rates if they do not avail specified exemption and incentive.
-  Black  Money  Act -  In  order  to  curb  the  flow  of  black  money  stashed  abroad,  the  Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (the Black Money Act) has been enacted, it increased the  voluntary  compliance  in  filing  Income  Tax Returns.
-  Benami  Law -  The  Benami  Transactions  (Prohibition)  Act,  1988  was  comprehensively amended  by  the  Benami  Transactions  (Prohibition)  Amendment  Act,  2016  to  enable confiscation of Benami Property and prosecution of benamidar and the beneficial owner.
-  New Form 26AS This new form contains all information of deduction or collection of tax at source,  specified  financial  transaction  (SFT),  and  payment  of  taxes,  demand  and  refund, pending and completed proceedings. Further, details of SFT data in the Form 26AS makes taxpayer aware about their transactions beforehand and encourages them to disclose their true income.
-  Pre-filling of Income-tax ReturnsIn  order  to  make  tax  compliance  more  convenient, pre-filled Income tax Returns (ITR) have been provided to individual taxpayers.  The scope of information  for pre-filing includes information  such as salary income,  bank  interest, dividends, etc.
-  Updated Return- Section 139(8A) of the Income Tax Act facilitates the taxpayer to update his return anytime within two years from the end of the relevant assessment so that he can file an updated return by voluntarily admitting omissions or mistakes and paying an additional tax as  applicable.  Further,  e-verification  scheme  was  launched  to  allow  tax-payers  to  disclose their unreported or under-reported income in the updated Income Tax Return.
-  Expansion of scope of TDS/TCS - For bringing new tax-payers into the net of income tax department,  scope of  TDS/TCS  was  expanded  by including huge  cash  withdrawal,  foreign remittance,  purchase  of  luxury  car,  e-commerce  participants,  sale  of  goods,  acquisition  of immovable property, remittance under LRS, purchase of overseas tour program package etc.
-  Availment  of  Input  tax  credit  in  respect  of  those  invoices  where  details  have  not  been furnished by the suppliers in their outward supply statement has been restricted to the eligible credit in respect of invoices the details of which have been furnished by the suppliers.
-  A registered person is not allowed to furnish the details of outward supplies under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding tax period.
-  B2B Electronic invoicing  has  been  extended  to  cover  taxpayers  having  aggregate  turnover exceeding Rs. 5 crores.
-  An explanation has been added to section 75(12) of Central Goods & Services Tax Act, 2017 to clarify that if tax payable declared by registered person in his returns of outward supplies has not been paid by him, the same will be considered as his self-assessed liability and can accordingly be recovered.
-  Biometric-based Aadhaar authentication of GST registration applications has been extended on pan-India basis. Besides, it has been provided through amendment in rule 8(4A) of CGST Rules that an applicant who has not opted for Aadhaar authentication, will also be required to visit GST Suvidha Kendra for taking of photograph and for document verification. This will not only strengthen the registration process in GST but also will help in combating fraudulent input tax credit claims made through fake invoices.
-  Centralized suspension of registrations pertaining to registered persons who default in timely filing of returns is carried out in terms of provisions of rule 21A of the CGST Rules, 2017.
-  Provisions  have  been  made  to  restrict  the  generation  of  e-way  bills  by  non-compliant taxpayers under Rule 138E of CGST Rules, 2017

Details, pertaining to devolution of States' share of central taxes and duties as recommended by Finance Commission since the financial year 2021-22 to till date

(Rs. in crore)

| SL   | State             |   2021-22 |   FY 2022-23 |       FY 2023-24 |   FY 2024-25 (upto 11.10.2024) |            Total |
|------|-------------------|-----------|--------------|------------------|--------------------------------|------------------|
| 1.   | ANDHRA PRADESH    |  35385.8  |     38176.7  |  45710.7         |                       32864.2  | 152138           |
| 2.   | ARUNACHAL PRADESH |  14643.9  |     16689.2  |  19845.2         |                       14268    |  65446.3         |
| 3.   | ASSAM             |  28150.5  |     29694.3  |  35330.6         |                       25401.3  | 118577           |
| 4.   | BIHAR             |  91352.6  |     95509.9  | 113604           |                       81677.2  | 382144           |
| 5.   | CHHATTISGARH      |  28570.9  |     32358.3  |  38481.9         |                       27667    | 127078           |
| 6.   | GOA               |   3356.98 |      3665.19 |   4359.85        |                        3134.5  |  14516.5         |
| 7.   | GUJARAT           |  31105.8  |     33034    |  39283.6         |                       28243.6  | 131667           |
| 8.   | HARYANA           |   9722.16 |     10378    |  12345.4         |                        8875.85 |  41321.4         |
| 9.   | HIMACHAL PRADESH  |   7349.04 |      7883.98 |   9374.72        |                        6740.09 |  31347.8         |
| 10.  | JHARKHAND         |  27734.6  |     31404.1  |  37352.3         |                       26854.9  | 123346           |
| 11.  | KARNATAKA         |  33283.6  |     34596.2  |  41192.6         |                       29616    | 138688           |
| 12.  | KERALA            |  17820.1  |     18260.7  |  21742.9         |                       15632.2  |  73455.9         |
| 13.  | MADHYA PRADESH    |  69541.5  |     74542.9  |  88665.3         |                       63746.9  | 296497           |
| 14.  | MAHARASHTRA       |  54318.1  |     60001    |  71349.8         |                       51298    | 236967           |
| 15.  | MANIPUR           |   6009.65 |      6795.08 |   8087.14        |                        5814.32 |  26706.2         |
| 16.  | MEGHALAYA         |   6580.63 |      7286.14 |   8663.22        |                        6228.56 |  28758.5         |
| 17.  | MIZORAM           |   4222.87 |      4745.25 |   5647.47        |                        4060.39 |  18676           |
| 18.  | NAGALAND          |   4875.46 |      5400.19 |   6426.82        |                        4620.71 |  21323.2         |
| 19.  | ODISHA            |  38144.8  |     42989.3  |  51143.7         |                       36770.2  | 169048           |
| 20.  | PUNJAB            |  15288.8  |     17163.7  |  20409.9         |                       14674    |  67536.4         |
| 21.  | RAJASTHAN         |  54030.6  |     57230.8  |  68063.2         |                       48934.9  | 228260           |
| 22.  | SIKKIM            |   3353.69 |      3680.28 |   4382.44        |                        3150.79 |  14567.2         |
| 23.  | TAMILNADU         |  37458.6  |     38731.2  |  46072.3         |                       33124    | 155386           |
| 24.  | TELANGANA         |  18720.5  |     19668.2  |  23742           |                       17069.6  |  79200.3         |
| 25.  | TRIPURA           |   6077.52 |      6724.23 |   7996.82        |                        5749.43 |  26548           |
| 26.  | UTTAR PRADESH     | 160358    |    169745    | 202620           |                      145676    | 678399           |
| 27.  | UTTARAKHAND       |   9906.25 |     10617    |  12627.8         |                        9078.94 |  42229.9         |
| 28.  | WEST BENGAL       |  65540.8  |     71434.9  |  84971.8         |                       61091.5  | 283039           |
|      | Grand Total       | 882904    |    948406    |      1.12949e+06 |                      812063    |      3.77287e+06 |