With reference to the data from GST as per economic survey 2017-18, consider the following statements.
1. There has been a large increase in the number of indirect taxpayers.
2. The distribution of the GST base among the states is closely linked to their Gross State Domestic Product (GSDP), allaying fears of major producing that the shift to the new system would undermine their tax collections.
With reference to the data from GST as per economic survey 2017-18, consider the following statements.
1. There has been a large increase in the number of indirect taxpayers.
2. The distribution of the GST base among the states is closely linked to their Gross State Domestic Product (GSDP), allaying fears of major producing that the shift to the new system would undermine their tax collections.
The correct option is C Both 1 and 2
Data from the GST can help unveil some long-elusive and basic facts about the Indian economy. Some exciting new findings include:
- There has been a large increase in the number of indirect taxpayers; many have voluntarily chosen to be part of the GST, especially small enterprises that buy from large enterprises and want to avail themselves of input tax credits;
- The distribution of the GST base among the states is closely linked to their Gross State Domestic Product (GSDP), allaying fears of major producing that the shift to the new system would undermine their tax collections; New data on the international exports of states suggests a strong correlation between export performance and states’ standard of living;
- India’s exports are unusual in that the largest firms account for a much smaller share than in other comparable countries;
- Internal trade is about 60 percent of GDP, even greater than estimated in last year’s Survey and comparing very favorably with other large countries;
- India’s formal sector non-farm payroll is substantially greater than currently believed. Formality defined in terms of social security provision yields an estimate of formal sector payroll of about 31 percent of the non-agricultural work force; formality defined in terms of being part of the GST net suggests a formal sector payroll of 53 percent.
- Similarly, the size of the formal sector (defined here as being either in the social security or GST net) is 13 percent of total firms in the private non-agriculture sector but 93 percent of their total turnover.
Both 1 and 2
Data from the GST can help unveil some long-elusive and basic facts about the Indian economy. Some exciting new findings include:
- There has been a large increase in the number of indirect taxpayers; many have voluntarily chosen to be part of the GST, especially small enterprises that buy from large enterprises and want to avail themselves of input tax credits;
- The distribution of the GST base among the states is closely linked to their Gross State Domestic Product (GSDP), allaying fears of major producing that the shift to the new system would undermine their tax collections; New data on the international exports of states suggests a strong correlation between export performance and states’ standard of living;
- India’s exports are unusual in that the largest firms account for a much smaller share than in other comparable countries;
- Internal trade is about 60 percent of GDP, even greater than estimated in last year’s Survey and comparing very favorably with other large countries;
- India’s formal sector non-farm payroll is substantially greater than currently believed. Formality defined in terms of social security provision yields an estimate of formal sector payroll of about 31 percent of the non-agricultural work force; formality defined in terms of being part of the GST net suggests a formal sector payroll of 53 percent.
- Similarly, the size of the formal sector (defined here as being either in the social security or GST net) is 13 percent of total firms in the private non-agriculture sector but 93 percent of their total turnover.
