Minister of State for Finance Anurag Singh Thakur has said the Central Goods and Services Tax (GST) collection stood at Rs 3.26 lakh crore till October 2019 in current fiscal year (FY20), which is around half the government’s target for 2019-20. The Budget Estimates for Central GST for 2019-20 has been fixed at Rs 6,63,343 crore. He said the shortfall or excess in collection of GST with respect to budget estimate, if any, is calculated after completion of financial year.
On direct taxes, the minister said that for 2019-20, the budget estimate is Rs 13,35,000 crore. Between April-October, 2019 the net collection of direct taxes is Rs 5,18,084 crore. Regarding revenue loss to the government on account of corporate tax rate reduction, Thakur said the likely revenue forgone due to the reduction in corporate tax rates has been estimated to be Rs 1,45,000 crore.
On reasons for not cutting personal income tax rates, he said over the past years, the government has provided personal income tax relief to taxpayers taking into account the overall needs of the economy. Besides, on the effect of slowdown on tax collection and fiscal deficit, he said the revised estimates of tax collection and fiscal deficit are decided at the time of preparation of the budget estimate for the next year.