Directorate General of Systems & Data Management, CBEC Scheme of the Presentation Scheme of the...

Directorate General of Systems & Data Management, CBEC

Scheme of the Presentation

A. Past Year’s Performance

B. Current year’s Revenue challenges

C. The GST Challenges


A. Highlights of the Past Year


Past Year’s Revenue Performance

IndiaRussi

aBra

zil

Australia

South A

frica

Argentina

Germany

Japan0

0.4

0.8

1.2

1.60.8600000000

00001 0.9 0.91 0.99 1.06 1.151.4

1.75Cost of Revenue Collection

Perc

enta

ge

Tax Head

B.E. 2014-15

R.E. 2014-15

Actual

%RE 2014-15

achieved

Shortfall/Gain

from RE 2014-15

2013-14

2014-15%Growt

h

Customs 201819 188713 172085 187856 9.2% 99.5 -857C. Excise 205452 183858 168483 188238 11.7% 102.4 4380Service Tax 215973 168132 154778 168063 8.6%

99.96-69

Total (Net) 623244 540703 495346 544157 9.9%

100.63454

Indirect Tax Collections : 2014-15 (Prov.)

Source: OECD


Achievements in Dispute Resolution

Financial Year

Disposal Supreme

Court

Disposal High Court

Receipts Settlement Commission

2012-13 260 3556 1610

2013-14 319 3420 1623

2014-15 504 4998 1625

1

• Rationalizing taxes and procedures to reduce /eliminate• litigation• assessment disputes and• transaction costs

2

•Online payments (99% CE, 98% Customs and 90% ST), Return filing, Help desks - •Introduction of digital signatures (10% of documents)

3

•Risk Management System (covering 98% of import and 95% of export cargo)

• Introduction of Single Window for Customs Clearance

4

•Mechanism for coordinating with stakeholders and other Regulatory Agencies (Customs Clearance Facilitation Committee) – Dwell time reduced by 2 days • 24/7 Customs Clearance Operations in major Sea and Air

ports (3500 documents daily beyond office hours)

Ease of Doing Business


B. Current Year’s Revenue Challenges


Present Revenue Trends against Targets Summary

Tax Head

Actuals 2014-15 (prov.)

B.E 2015-

16

Asking rate(%) for 2015-

16

For July April to July

2014-15

2015-16

%

Growth

Duty 2015-

16 without #ARM

% Growth without #ARM

2014-15

2015-16

%

Growth

Duty 2015-

16 without #ARM

% Growth without #ARM

1 2 3 4 5 6 7 8 9 10 11 12 13 14

$Customs

187856 208336 10.9 15419 18996 23.2 18596 20.6 54594 66076 21.0 64176 17.6

*C.Excise

188238 228157 21.2 13512 22273 64.8 14923 10.4 47579 83454 75.4 54054 13.6

Service tax

168063 209774 24.8 11871 15470 30.3 13470 13.5 50723 60925 20.1 56925 12.2

Total

544157 646267 18.8 40802 56739 39.1 46989 15.2 152896 210455 37.6 175155 14.6

0%2%4%6%8%10%12%

3.6%

8.5%

Sectoral Growth of GDP

Perc

en

tag

e

MANUFACTURING(APRIL-JUNE 2015)

SERVICES(APRIL-JUNE 2015)


C. GST Challenges


CAG report on implementation of State VAT made the following recommendations as lessons for GST implementation:Resolve major legacy issues before transitionClear standard operating manuals for returns

scrutiny and audit Integrated computer system with facility for

cross verification of input credit Incentive system involving deferral /exemption

of taxes may be phased away as they dilute the advantages of GST

Lessons for Implementing GST


CBEC has taken / proposed to take the following measures:

Creation of a GST Directorate to focus on operational aspect of GST implementation

Creation of GST policy wing in CBEC Creation of Directorate of Tax Payer Services Restructuring Directorate of Inspection as Directorate

of Programme and Performance Management Creative use of LTU for registration of services which

are pan India in nature i.e., Banking, Insurance and Telecommunication

Broadly these measures seek to strengthen the Directorates as an effective intermediate tier between the Board and the field formations

CBEC’s Administrative Preparedness for GST


Biggest gain from implementation of GST - organized manufacturing :

Level playing between imports and domestic manufacturing

Reduction in non-compliance in the trading segment creation of a level playing field between domestic

manufacture and domestic trading Requirement for lower inventory levels due to faster

movement of goods through removal of bottlenecks in inter-state movement of goods

GST & Make in India


Expected revenue buoyancy under GST regime: Due to increase in tax rate - Services Due to increase in tax base - Goods

shift in the taxable event from manufacture to the ‘supply of goods’

reduction in threshold limit pruning of exempted list of goods

Due to reduction in non- compliance Entire value chain to be taxed concurrently by

both Centre and State Reduction in arbitrage between inter-state &

intra-state supplies Systems based ITC matching

Revenue prospects under GST

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