Mobilization of resources & Taxes

• Tax buoyancy - change in tax revenue with a change in GDP, efficiency & responsiveness 
• Tax elasticity - tax revenue growth wrt tax rate, 

Steps Taken 

• GST implementation, 
• Info driven approach - tracking transaction w/o PAN, Project insight, info of TDS
• Voluntary compliance - SMS, Email, user-friendly filing
• Amnesty scheme for curbing black money

• Progressive tax- 
• equitable, 
• economical - less cost of collection,
• productive - yield more revenue,
• elastic  
• better distribution of income,
• -ve -Dampen incentive to work, save, promote evasion 

• Regressive, 
• Proportional  
• Degressive - increase up to point than constant (Progressive + proportional)

GST

• Destination based Indirect tax
• GSTC - UA-279A
• GSTN
• Reverse charge mech,
• Composition scheme 1.5 cr
• Eway bill - 1 transit pass,
• GSTAT

• 17 taxes (VAT, Excise, Service T)
• Formalization, compliance, x cascading, self policing, revenue base buoyancy collection, 1 N,1T, common Market 

Issues

• Anti-profiteering norms, 
• WB - GST complicated (5 tax rate, exemption, cess, gold), rate highest 
• Electricity, Petroleum, real estate, Alcohol -  30-40 %
• Tax incidence on service 14 --> 18
• Data privacy, tech glitches, cybersecurity, 
• Multiple slabs - Litigation, auditing cost
• Taxmen - visit, inspect, mock purchase

Way Forward

• Include ATF, Alcohol petrol etc.
• Single auth for sanctioning and processing GST return (both c,s) 
• Better compliance in composition scheme
• 2 rates
• FM- Pending GST refund to MSME to be paid within 30 d

Direct tax 

• GDP ratio - 6 % (f17)
• Progressive, lowers Indirect T, control inflation, Fiscal health, reduce crowding out

Issues

• Evasion 
• Tax terrorism - CCD founder
• Outdated tax laws
• High Corporate tax

Solution 

• Arbind Modi panel / Akhilesh Ranjan DTC
• 25 % - corporate tax for all 
• Faceless assessment 
• Income declaration scheme
• Aayakar setu(tax filing, TDS, PAN)
• Pro Insight (BD analytics)
• Linking Aadhar to Bank acc to PAN
• Base increasing 
• Eco growth, GST - evasion difficult, Digi platform, a hassle-free refund (confi), demonetization, gov schemes

Capital Gain Tax

• Income derived from cap asset (movable & immovable ) 
• Digital tax 

Issue

• Loopholes in treaties - CGT not in IN & Mauritius & Singapore 

Actions Taken

• From April 1, CGT on investment from these 2 Nation
• DTAA with 2 Nations, 2 Years back
• FM- Rollover of enhanced surcharged on domestic & FPI capital gain from shares

Base erosion profit shifting

• Tax avoidance - artificially shift profit to low / no tax location 
• BEPS - edge to MNCs
• Loss of tax revenue

Actions Taken

• OECD BEPS pro & action plan 2015
• Level playing field MNC, Domestic firm  
• POEM - place of affective tax management 
• APA
• Prevent double taxation, Increase Tax revenue
• Multi convention - modifies India's treaty 

GAAR