U.P. launches initiative to broaden GST base

The state aims to enhance compliance and curb tax evasion by appointing officials to oversee specific sectors and ensure operations are scrutinised for irregularities.

Published on: Jan 29, 2025, 09:36:05 IST

By Brajendra K Parashar, LUCKNOW

Prefer HTon Google

Share via

Copy link

Uttar Pradesh has launched a new initiative aimed at expanding its Goods and Services Tax (GST) base by focusing on untapped sectors within the service industry. The move is expected to bring more revenue into state finances. Key sectors under scrutiny include real estate, banking, insurance, advertising, restaurants, and e-commerce.

Commissioner state tax, Nitin Bansal said the service sector has immense scope for broadening the tax bae in the state (Sourced)

The state aims to enhance compliance and curb tax evasion by appointing officials to oversee specific sectors and ensure operations are scrutinised for irregularities.

Commissioner state tax, Nitin Bansal said the service sector has immense scope for broadening the tax bae in the state. “There may be a number of areas with the service sector, that are presently not taxed for any reason. We are identifying such areas with a view to bringing them under the tax net,” he added.

A key area identified for revenue generation is the transport department, where officials estimate ₹300 crore could be collected from VIP vehicle registration number auctions, subject to an 18% GST levy. The state’s tax department has already issued a notice to the transport department clarifying that revenue from VIP number auctions is taxable under GST.

M Devraj, principal secretary of state tax, explained that before GST implementation in 2017, taxes on services were collected by the Centre, and many state officers are still unfamiliar with the nuances of the service sector. To address this, joint commissioners have been assigned as nodal officers for sectors like e-commerce and real estate, tasked with identifying potential tax leakages.

“While it is too early to comment on the possible additional revenue that could be tapped by targeting services, we understand the real estate alone may have the potential of generating a revenue of ₹300-400 crore annually,” the official said.

ABOUT THE AUTHOR
Brajendra K Parashar
Brajendra K Parashar is a Senior Journalist with the Hindustan Times, based in Lucknow, with nearly three decades of experience covering governance, public policy, politics and development in Uttar Pradesh. Over the years, he has reported extensively on key sectors, including energy and renewable power, mobility and transport, road safety, agriculture and allied sectors and issues related to farmers, rural development, taxation under the Goods and Services Tax (GST) and public administration. A seasoned political correspondent, Parashar closely tracks the Bharatiya Janata Party (BJP) and has covered every major election in Uttar Pradesh right from three-tier panchayat elections and urban local body polls to Assembly and Lok Sabha elections. He also reports regularly on the proceedings of the Uttar Pradesh Legislature, bureaucracy, governance, policy decisions and administrative developments with focus on their impact on public life. His reporting is known for its strong analytical approach, extensive use of official data. His areas of interests include investigative journalism, long-form political and policy analysis, data-driven reporting, elections and institutional reforms. Parashar holds a postgraduate degree in Political Science with First Division from Aligarh Muslim University (AMU), followed by a Diploma in Journalism and Mass Communication from the same university. His inclination towards journalism began during his student days, when he regularly contributed letters to editors and articles to newspapers and magazines. In the mid-1990S, his essay, “Should India Switch Over to the Presidential Form Of Government?”, published in Politics India magazine edited by noted constitutional expert Subhash C Kashyap, was adjudged the best entry in a national competition. His work has received professional recognition, including the Hindustan Times Journalist of the Month Award for an impactful series on drinking water issues during the 2010 Lok Sabha election campaign. Originally from Kasganj in western Uttar Pradesh, Parashar is currently based in Lucknow where continues to report on politics, governance and public policy.Read More

Home/Cities/Lucknow News/U.P. Launches Initiative To Broaden GST Base