Strengthening GST Administration in Delhi

Introduction:

Finance Minister Atishi outlined the state’s plan to strengthen its Goods and Services Tax (GST) administration, aiming for a faceless system. She emphasized the need to modernize the IT infrastructure of GST and transition to a faceless tax administration model.

Tax Collection Growth:

According to Atishi, the tax collection for GST and VAT until January 2024 witnessed a growth of 13.96 percent compared to the previous fiscal year, reaching Rs 31,445 crores.

Modernization Efforts:

The government is collaborating with IIT Hyderabad to develop data analytics and automation software, which will enhance tracking, monitoring, and simplifying the refund process through AI and data analytics, thereby reducing processing time and errors in files.

Unique Fiscal Situation:

Despite a slight decrease in the budget estimate compared to the previous year, Atishi highlighted Delhi’s “unique” fiscal situation, maintaining fiscal surplus while providing free-of-cost facilities like electricity, water, and bus rides to women.

Taxpayer Statistics:

Delving into the tax landscape, Atishi disclosed that Delhi has a total of 7.88 lakh GST taxpayers, with 4.82 lakh under the jurisdiction of the state government.

Tax Evasion Detection:

The government conducted 167 special audits, resulting in the detection of a tax deficiency of Rs 5,321 crore. Additionally, field verification led to the suspension of 2,911 fake firms and the detection of tax evasion amounting to Rs 1,316 crore.

Budget Allocations:

The budget estimates for 2024-25 allocate Rs 6,400 crore to state excise revenue, with other major components including stamps and registration (Rs 7,750 crore) and taxes on motor vehicles (Rs 3,600 crore).