Excise, service tax collections likely to miss target in Gujarat
March, 10th 2015
The net revenue in Gujarat zone of excise duty and service tax has registered a growth in the current fiscal, but is likely to fall short by over Rs 2,000 crore in meeting the target.
Against Rs 17,050 crore target for the financial year 2014-15, the collections of central excise duty and service tax till January 2015 in Gujarat region have been Rs 11,338 cr.
In case of excise duty, against the target of Rs 10,110 crore in 2014-15, around Rs 7,164 crore has been collected in Gujarat, recording a growth of 9.22% in net revenue collections. In 2013-14, around Rs 6,559 crore was collected in excise duty in the state.
Against the target of Rs 6,940 crore in 2014-15, around Rs 4,174 crore has been collected in the current fiscal till January 2015, recording a growth of 5.91% in net revenue. Last year, around Rs 3,941 crore was collected in service tax in the state.
The officials believe that high target accorded by the central government is unlikely to be met following low collections in certain sectors such as real estate and construction in the state.
The central board of excise and customs had increased the target of excise duty and service tax by 21% and 40% in 2014-15. According to the estimates by the central agencies, the shortfall is likely to be around Rs 481 crore (-4.75%) in excise duty and Rs 1,675 crore (-24%) in service tax collections.
"Certain sectors like hotel and catering registered a huge growth in service tax collections, while collections from sectors such as real estate were on a slower side. With the increase announced in excise duty and service tax in finance budget by the finance minister, the collections are likely to grow by huge numbers in next fiscal," said an excise official.