Economic Survey 2018: 50% increase in unique indirect taxpayers, thanks to GST

Economic Survey 2018: 50% increase in unique indirect taxpayers, thanks to GST

The Economic Survey 2018 has highlighted  a significant rise in unique indirect taxpayers under the GST compared with the pre-GST system

Breaking down the impact of Goods and Services Tax on the Indian Economy, the Economic Survey 2018 brings out key highlights about the new tax regime, taxpayers,  export data and states' export performance; here are 10 takeaways from the Economic Survey 2017-18's chapter 'A New, Exciting Bird's-Eye View of the Indian Economy Through the GST'

  1. There has been a large increase in the number of indirect taxpayers; many have voluntarily chosen to be part of the GST, especially small enterprises
  2. About 18 lakh individual income tax filers were added since November 2016

  3. The profile of new filers is interesting; the bulk of transactions are business-to-business (B2B) and exports: 30-34% apiece

  4. There are about 1.7 million registrants who were below the threshold limit (and hence not obliged to register) who nevertheless chose to do so
  5. Around the estimates of the GST tax base, the Revenue Neutral Rate Committee had estimated a base of Rs 68.8 lakh crore and the GST Council had estimated a base of Rs 65.8 lakh crore; the current data puts that at Rs 65-70 lakh crore
  6. New data on the international exports of states suggests a strong correlation between export performance and states' standard of living
  7. Internal trade is about 60% of GDP, even greater than estimated in last year's Survey and comparing very favourably with other large countries
  8. The five largest exporting states are Maharashtra, Gujarat, Haryana, Tamil Nadu and Karnataka
  9. The five largest importing states are Maharashtra, Tamil Nadu, Uttar Pradesh, Karnataka and Gujarat; the states with the largest internal trade surpluses are Gujarat, Haryana, Maharashtra, Odisha and Tamil Nadu

  10. "Formality" was defined in terms of social security provisions like EPFO/ESIC, the formal sector payroll was found to be about 31% of the non-agricultural workforce; when "formality" was defined in terms of being part of the GST net, such formal sector payroll share was found to be 53%.