Anurag Singh Thakur, Minister of State for Finance in a written reply to the Lok Sabha has notified that the Budget Estimates for Central Goods and Services Tax (GST) for 2019-20 has been fixed at Rs 6,63,343 crore. The actual net GST collection for the Centre till October 2019 in current fiscal year is Rs 3,26,490 crore. He has also said the shortfall or excess in collection of GST with respect to budget estimate, if any, is calculated after completion of the financial year.
The minister informs that for 2019-20, on direct taxes 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.
On the details of the revenue loss to the government on account of corporate tax rate reduction, Thakur replies that 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, the minister has said over the past years, the government has provided personal income tax relief to taxpayers taking into account the overall needs of the economy.
Thakur on the effect of slowdown on tax collection and fiscal deficit has said that the revised estimates of tax collection and fiscal deficit are decided at the time of preparation of the budget estimate for the next year.
The recent initiatives undertaken by the government include basic tax exemption limit enhancement from Rs 2 lakh to Rs 2.5 lakh; increase in the limit for claiming deduction under section 80C of the Income Tax Act from Rs 1 lakh to Rs 1.5 lakh and standard deduction of Rs 40,000 for salaried taxpayers as well as pensioners.
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