Public listed companies comprise a mere 0.62 per cent of the overall taxpayer base, but they contributed 35.29 per cent of the GST revenues.
The public listed companies in India add the highest amount of Goods and Services tax revenues for the government. These companies comprise a mere 0.62 per cent of the overall taxpayer base, but they contributed 35.29 per cent of the GST revenues, revealed the statistical report of GST Network after three years of GST. On the flip side, the proprietorships with the maximum 80.18 per cent taxpayer base contributed 13.35 per cent of the revenue. The contributions of PSU companies also remained significant as they comprised only 0.02 per cent share in the taxpayer base but accounted for 9.12 per cent of the total GST revenue.
The GST revenue in the country remained skewed as most of the revenues have been generated by the businesses with an annual turnover above Rs 5 crore. These businesses comprising a taxpayer base of 7 per cent contributed 80.7 per cent to overall GST revenue. While 22 per cent of the taxpayers recorded nil tax liability under GST, 28 per cent of the taxpayers having an annual turnover of up to Rs 20 lakh accounted for 1-2 per cent of the revenue.
The Goods and Services Tax was implemented in India by the Narendra Modi government on July 1, 2017. The government aimed to bring in an indirect tax regime with a theory of ‘One Nation, One Tax’. However, various sub-divisions and various kinds of cess made the classification of products cumbersome at the micro-level, which is still a pain for many traders in the country.
Watch: News with Financial Express July 10, 2020
Meanwhile, with an aim to introduce transparency in the tax, the GST Council is still modifying the rules according to the need of the businesses. Though issues such as inverted duty structure are yet to be addressed, clarity on imports and exports of various products have been provided by the government. As on 6 July 2020, there are 1.23 crore registered taxpayers under GST and 47.2 crore GST returns have been filed. Recently, the government has also introduced a facility to file GSTR 1 and GSTR 3B returns via SMS.