Prime Minister Narendra Modi has reviewed the preparedness for the rollout of Goods and Services Tax (GST), the country’s most ambitious indirect tax regime since Independence, which the government intends to implement from July 1. Apart from GST roll-out preparations, Modi also discussed progress on the central government’s anti-black money drive post note ban and tax collected thereof.
PM has discussed disclosures made in the tax amnesty scheme announced after the junking of old 500 and 1,000 rupee notes in November last year along with the measures being planned by the tax department against tax evaders. He also reviewed progress made in the anti-black money drive, called Operation Clean Money, and the tax amnesty scheme Pradhan Mantri Garib Kalyan Yojana (PMGKY). The revenue department is also believed to have given a report card on not just the black money disclosed and tax collected thereof, but the ill-gotten wealth seized during searches and raids across the country.
Meanwhile, the scheme, PMGKY, provided for payment of 50 per cent tax and penalty on unaccounted cash deposited in bank accounts. Under the Income Disclosure Scheme (IDS), the first domestic black money disclosure programme last year- Rs 12,700 crore tax have been collected. As for GST, the GST Council, chaired by Finance Minister Arun Jaitley and comprising his state counterparts has decided on the four-tier tax structure of 5, 12, 18 and 28 per cent. The crucial fitment of goods and services in the tax brackets is yet to be decided. The council will meet on May 18-19 and work out on the fitment part.