Number of businesses under tax net increases
Since the launch of single tax regime, Goods and Services Tax (GST) on July 1 this year, as many as 2,700 businesses have come under the tax net, according to officials of Commercial Tax Department in the erstwhile Mahbubnagar district.
Mahbubnagar: Since the launch of single tax regime, Goods and Services Tax (GST) on July 1 this year, as many as 2,700 businesses have come under the tax net, according to officials of Commercial Tax Department in the erstwhile Mahbubnagar district.
The officials revealed that as per the provisions of newly introduced GST, all businessmen whose annual turnover is more than Rs 20 lakh must get registered and obtain GST number. With this, those businesses who did not register earlier with the Commercial Tax Office are forced to apply to GST for them to carry out their business activities.
“Post GST introduction, a large number of businesses came under the tax net and the number of GST registered businesses have considerably increased compared to earlier multiple tax regime,” Nagababu, District Commercial Tax officer Mahbubnagar said. Earlier, before induction of GST, there were a total of 6,574 businessmen in the erstwhile undivided Mahbubnagar district. However, the number has now increased up to another 2,751 businesses after the introduction of the GST.
According to commercial tax officials, this number is further expected to go up in the coming days. Earlier, some businessmen used to show that their annual turnover was not more than Rs 7.5 lakh before the introduction of GST. But, now with the introduction of GST they are not able to escape from the government anymore, as it is mandatory for any transaction above Rs 2 lakh in liquid cash to be carried out through digital or by cheque process.
Moreover, the entire process of procurement of products has gone online and manufacturers are insisting on GST numbers from retail sellers to purchase their products. This has left the tax evaders to obtain the GST numbers and comply with the provisions of the State government.
Though the Department had earned Rs 195.15 crore in the erstwhile Mahbubnagar district during the financial year 2015-16, the income went up to Rs 272 crore during the subsequent financial year of 2016-17 post GST.
The officials are opined that the income would go up manifold in the coming days, as more and more people who enter into businesses compulsory get registered with the GST.