-Five years since its implementation, VAT collection still exceeds GST collection
VAIBHAV PARWAT
Chhatrapati Sambhajinagar: Chhatrapati Sambhajinagar has witnessed a significant increase in Value Added Tax (VAT) collection in the recent months. As per the data provided by the local authorities, the district has collected around Rs 1141.39 crore in VAT revenue in the last quarter, which is a considerable increase from the previous year's GST collection.
Five years since its implementation, the Aurangabad division has reported that VAT collection still exceeds GST collection. According to data obtained from the state GST department, Rs 735.60 crore was collected as GST between April and November 2022, while Rs 1141.39 crore was collected as VAT tax during the same period.
Despite this, the GST system has been praised for closing all loopholes of tax evasion and increasing revenue for both State and Central governments. Previously, taxpayers had to pay five to seven different taxes in different ways, but GST has brought all taxes, including VAT, under one system.
VAT levied only on fuel and liquor
Under the new tax regime, VAT is only levied on petrol, diesel, and liquor. While the data suggests that the revenue received by the government is still more from VAT, the implementation of GST has made the tax system more efficient, transparent, and easier to comply with.
Due to IGST credit benefit
There has been a substantial increase in tax collection every year. Many taxpayers benefit from the credit of Integrated Goods and Services Tax (IGST), which is later received by the state from the Centre. However, this amount of tax collection collected by Aurangabad division is not included in the report. Therefore, VAT collection seems to be more than GST," said G Srikanth, Joint commissioner, SGST.