New registrations under the goods and services tax (GST) crossed the 10 lakh mark on Saturday, a milestone that brings cheer to policymakers who have been hoping for an increase in the tax base after the roll out of the new tax measure.
"The figure of new registrations approved in GST crosses 10 lakh today. About two lakh applications pending in process," revenue secretary Hasmukh Adhia tweeted on Saturday. Increase in the tax base was one of key GST promises.
Finance minister Arun Jaitley had said recently that if tax base expands, the government could consider lowering tax rates.
The goods and services tax+network (GSTN), the IT backbone of the new tax system, has also registered 86 lakh existing business and service providers. "Out of this 86 lakh, we have activated the GSTIN number for 71 lakh," GSTN CEO Prakash Kumar told TOI.
The GSTN network operations have been smooth and adjusted well to the flow of applications. Several businesses which are below the threshold turnover of Rs 20 lakh are also registering to ensure that the input tax credit chain is maintained.
GST registration is compulsory for businesses with over Rs 20 lakh annual turnover.
The government expects that it will be able to significantly expand the tax base after the implementation of GST, with some estimates forecasting a 20-25% increase in indirect tax collections.
Tax experts said they would prefer to wait and watch to assess the increase in revenue collections as some businesses might have opted for multiple registrations.
Indiatimes
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