Government launches incentive scheme to improve tax compliance at retail level

  • The scheme offers consumers a chance to win 1 crore, 10 lakh and 10,000 as incentive.

Gireesh Chandra Prasad
First Published1 Sep 2023, 03:05 PM IST
The minimum value for invoices to be considered for the draw has been kept at  <span class='webrupee'>₹</span>200.. Photograph: ABHIJIT BHATLEKAR/MINT
The minimum value for invoices to be considered for the draw has been kept at ₹200.. Photograph: ABHIJIT BHATLEKAR/MINT

New Delhi: The government on Friday launched a new scheme called ‘mera bill mera adhikaar’ to encourage consumers to insist on invoices at the time of purchase.

The scheme introduced in Haryana, Assam, Gujarat and the union territories of Dadra and Nagar Haveli, Daman and Diu and Puducherry offers consumers a chance to win 1 crore, 10 lakh and 10,000 as incentive.

The minimum value for invoices to be considered for the draw has been kept at 200. All invoices issued by GST registered sellers will be eligible for the scheme and maximum 25 invoices will be considered from an individual in a month.

Dushyant Chautala, deputy chief minister of Haryana told reporters at an event in Gurugram that every year, rewards worth 30 crore will be given in these states and union territories.

“Any invoice above 200 can be uploaded. In every quarter, there will be two rewards for 1 crore each by draw of lots. For this, government has made Mera Bill Mera Adhikar app. More than 50,000 people have downloaded the app," Chautala told reporters.

Revenue secretary Sanjay Malhotra said the scheme is launched for one year and later it may be decided whether it can be extended to the whole country. The scheme is designed to inculcate the habit of insisting on invoice at the time of purchase, which will also help consumers in availing of post-sale customer support, product replacement or refund in addition to encouraging tax compliance at the retail level.

Malhotra explained that nominal gross domestic product (GDP) has grown by 8% in the June quarter and GST revenue collection growth is on a faster pace.

“GST revenue during this period, in the first quarter, has grown by more than 11%. This translates into a tax to GDP ratio of more than 1.3. Tax collection has grown more than the nominal GDP without any increase in the tax rate. This is because of better compliance and improved tax collection efficiency," said Malhotra.

For policy makers, improved tax compliance and revenue collections will make it easier to further lower the tax rates. Chautala said that monthly GST receipts of the Centre and states have progressively improved from around 1 trillion earlier to 1.5 trillion last year and to 1.6 trillion this year. If this keeps improving like this, then, as revenue neutral rate of GST tax rate has been brought to below 12%, the GST Council will be inspired to lower it further, Chautala said. Revenue neutral rate of GST refers to tax incidence of items subsumed into GST, which is about three percentage points lower than that of the pre-GST regime.

“As the Deputy Chief minister said in his speech, it has always been GST Council's intent that GST rates remain low. A group of ministers is also looking into where tax rate rationalisation can be done. Whatever changes may be required, the Council makes those decisions,” said the revenue secretary.

The ‘mera bill mera adhikaar’ scheme is the latest in the efforts by the tax authorities to step up GST compliance. Central and state authorities have been taking a host of steps including increased reporting requirements and use of data analytics to improve tax compliance. This, along with healthy economic growth, has aided in improving GST revenue collections.

 

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First Published:1 Sep 2023, 03:05 PM IST
HomeNewsIndiaGovernment launches incentive scheme to improve tax compliance at retail level

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