Lucknow: The state tax department is the biggest contributor to the revenue received by the state of Uttar Pradesh. The department has contributed a total of Rs 1,10,345.96 crore to the state treasury in the financial year ending March 31. This amount of revenue includes Rs 75,157.85 crore from GST, Rs 4070.32 crore from GST reimbursement and Rs 31,113.97 crore from VAT.
Giving this information, State Tax Commissioner Ministhy S. said that this task of revenue collection has been full of difficulties in the financial year 2023-24 compared to other previous years. The provision of GST reimbursement under the GST related provisions of the Indian Constitution has expired in June, 2022. Last year, the state of Uttar Pradesh had received an amount of Rs 11,290.98 crore under the head of GST reimbursement.
In the year 2023-24, only an amount of Rs 4070.32 crore has been received under this item as the residual liability of the past, thus the state had received less amount of Rs 7220.66 crore as compared to the previous year.
Similarly, the unsettled IGST has been distributed among the states by the Government of India in a predetermined ratio, last year the state of Uttar Pradesh received Rs 2,172.19 crore under this head, against which the amount received this year has been zero. Thus, out of the amount regularly received by the state in the past, the department did not receive a total amount of Rs 9392.85 crore (Rs 7220.66 + Rs 2172.19 crore), which had to be compensated by the department in order to achieve the revenue target.
Similarly, in VAT revenue, after the decision of the High Court last year, the amount of Rs 2455.05 crore deposited in the PLA of the previous entry tax was transferred to the VAT account, which was not a part of the regular collection. Regular VAT collection for the financial year 2022-23 was actually Rs 29,531.30 crore.
Under the able guidance of Additional Chief Secretary State Tax and Commissioner State Tax, the State Tax Department took this challenge as an opportunity to provide additional revenue to the State Government for development and public welfare works and in this direction, it was implemented in a planned manner with full dedication.
The work started by formulating a strategy. To collect maximum revenue in a transparent manner, the help of technology was taken, by taking action on various parameters through IT tools (Business Intelligence and Fraud Analytics (BIFA)), Rs 26.04 crore was deposited in March 24 and till the month Rs 1333.05 crore was deposited.
With the help of AI (Artificial Intelligence) based notice module, an amount of Rs. 424 crore has been deposited for the year 2017-18, Rs. 327 crore for the year 2018-19, Rs. 61 crore for the year 2019-20. Till March in the year 23-24, Rs 2145.74 crore has been collected from BIFA and AI based notices. Executive government agencies were made aware about TDS through various meetings, as a result of which TDS revenue of Rs. 4227.97 crore has been collected till March in the year 2023-24, which is Rs. 738.83 crore from TDS revenue of Rs. 3489.14 crore till March 2023 i.e. 21.2 percent more.
The department has made every possible effort to increase revenue. Also, 3.05 lakh new registrations have been issued in the corresponding year, due to which the number of registrations issued in the state has increased to 32.05 lakh.
Strict steps were taken to stop revenue evasion. In the financial year 2023-24, Rs 603.93 crore imposed tax/fine was deposited by the mobile force units, which is 21 percent more than Rs 498.61 crore imposed/deposited penalty till the corresponding period last year. Similarly, Rs 874.50 crore has been deposited by VHD units, which is 98.8 percent more than the revenue of Rs 439.90 crore deposited till March last year.
The result of these works is reflected in higher revenue collection compared to last year. According to the press release of the Government of India PIB New Delhi 1/4/24, the country’s GST revenue has increased by 11.7 percent in the financial year 2023-24. According to the state wise data of the published release, while on one hand the GST growth rate of the state of Uttar Pradesh has been 16 percent, on the other hand some other important states from the point of view of economic and industrial development i.e. 15 percent in Maharashtra, 15 percent in Karnataka, 13 percent in Tamil Nadu.
An increase of 10 percent has been recorded in Gujarat, 12 percent in Rajasthan and 13 percent in Haryana. Against the regular actual VAT collection of Rs 29,531.30 crore for the financial year 2022-23, an amount of Rs 31,113.97 crore has been received under the head of VAT in the year 2023-24, which is Rs 1,582.67 crore i.e. 5.4 percent more than the regular revenue of last year.
The department had achieved a target of Rs 1.5 lakh crore for the year 23-24, against which the target has been achieved at 73.6 percent. The average target fulfillment of all gross tax revenues of the state published by the Finance Department is 74.3 percent.
The state tax department’s combined target achievement of GST and VAT is also equivalent to this. Overall, the State Tax Department has collected Rs 14,790 crore more i.e. 16.2 percent more revenue from the regular revenue of GST and VAT than last year.
In the month of November, due to lack of budget in IGST of the state, Rs 1,158.30 crore has been withheld by the Government of India, which will be received in the coming months, including this, the gross revenue received by the department is Rs 1,11504.26 crore, which is more than the total gross revenue of the state. To meet the average target of tax revenue.
