With government introducing various anti-evasion measures like TDS, TCS and credit matching, SBI Research in its latest report has expressed hope that the Goods and Services Tax (GST) collection will be very good in the ongoing financial year (FY19) and revenue target of Rs 12.9 trillion also seems feasible.
As per the report, out of all the 15 States, seven states -- Karnataka, West Bengal, Haryana, Bihar, Odisha, Chhattisgarh and Jharkhand are expected to post lower than 14% growth in tax revenue in the current year, while remaining states may see better tax collection. It also said that looking at the GST budgetary estimates for FY19 across the states, Gujarat, Karnataka, Bengal, Haryana and Bihar are highly depending on GST and will get over 38% GST share to tax revenue, while for Andhra, Chhattisgarh, and Jharkhand it is less than 25% and may rely on the other sources of revenue to meet their funds.
SBI Research has urged states to focus on increasing the tax-base to improve tax collection, rather than imposing higher taxes on other sources. It further expressed need of some time for state GST to get settle down and added that with the increased tax base and better compliance, the revenue collection for the state will improve in next two to three years down the line.