India’s government has said it is launching an effort to collect GST collections from all citizens, not just those with the correct Aadhaar numbers.
The move comes after several states announced that they were introducing a new system that would collect payments from all residents.GST collection is one of the biggest taxes on citizens, with the total value estimated at around Rs 6,500 crore.
But as the government of Prime Minister Narendra Modi, which has promised to eliminate the tax entirely, struggled to implement the new system, it is being asked to find a way to collect the money.
The aim is to have collected about 80% of the collection in the next two years, the Finance Ministry said on Wednesday.
Gains and lossesTaxes are one of India’s major revenue sources.
The government said it was aiming to collect all GST collections in the first year, and would then work on the collection rate for subsequent years.
This would mean collecting about 80 percent of the total collected in a fiscal year.
The new system would also require all taxpayers to give their Aadhaar number and account number to the state government, in order to be eligible for the new tax system.
This is not compulsory, and is done on a case-by-case basis.GUIDANCE: How to collect taxIncome tax is one aspect of the GST system that has come under fire in recent months.
The GST was initially introduced in 2005, but it was gradually rolled out in 2013.
It is a tax on goods and services that can be used for private consumption.
The revenue generated from GST is used to finance the government’s infrastructure and public health programmes.
The first phase of the tax system was implemented in July 2018, and was aimed at helping people avoid tax evasion.
However, the government later removed some of the taxes from the system, including those on diesel and petrol.
The tax system has come in for criticism from the opposition parties and activists, with some arguing it is not fair for the government to collect taxes from those who are not citizens of the country.
Some critics have argued that the new collection system does not reflect the real state of the economy.
The Finance Ministry has said the new scheme will not be a tax.
But a study commissioned by the BJP government last year found that nearly 40 percent of Indians did not pay any income tax in 2018.
In the wake of the criticism, the tax department on Tuesday said it would not be scrapping the collection system, but was instead working on new ways to collect data on those who do pay.