HNI Commodity Pack >> GST will also impact direct tax collection

Union Finance Minister Arun Jaitley on Wednesday said that the Goods and Services Tax (GST) is bound to impact the direct tax collection as well due to the increased detection technology and greater compliance.

"To claim input tax credit under GST, people need to disclose their volume of transactions. There is bound to be a corresponding impact on direct tax," Jaitley said here during the launch of a book titled "Concise Commentary on Income Tax" published by Wolters Kluwer. "Therefore, the impact of GST will not only be on indirect taxes but also due to the efficient system, on direct tax. The possibility of tax detection is very high because of technology," he said. The Finance Minister said that even before GST was rolled out, the impact of demonetization has expanded the number of assessees under the personal income tax.

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