Direct tax collection rises by 41% to ₹3.54 lakh cr. in Q1 FY23

Cryptocurrencies unregulated in India as of now: MoS Finance

July 25, 2022 09:28 pm | Updated 11:08 pm IST - New Delhi

Pankaj Chaudhary

Pankaj Chaudhary | Photo Credit: PTI

Net direct tax collection in the April-June quarter of the current fiscal rose by 41% to ₹3,54,569.74 crore, Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha.

During the April-June period of 2021-22, the government had collected a net direct tax of ₹2,50,881.08 crore.

At the same time, net indirect tax collection including Goods and Services Tax (GST) and custom duty increased by 9.4% to ₹3,44,056 crore as against ₹3,14,476 crore in the first quarter of the previous fiscal, he said in a written reply.

“Various factors like rapid economic recovery post-COVID, better compliances due to various measures taken by the government have contributed to this increase,” he said.

He also informed that no tax exemption has been granted to food items during the current financial year.

Mr. Chaudhary said several steps had been taken by the GST Council to improve compliance, including auto population of distance based on the PIN Code in the e-waybill and automatic calculation of interest in the GSTR 3B for the delay in payment of GST liability.

In another question, he said cryptocurrencies were unregulated in India as of now.

Cryptocurrencies and non-fungible tokens (NFTs) are by definition borderless and require international collaboration to prevent regulatory arbitrage, he said.

“Therefore any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards,” he said.

Replying to another question, he said that Goods and Services Tax (GST) on health insurance services is levied at the standard rate, i.e., 18% at present.

However, certain insurance schemes catering to poor sections of society and differently-abled, such as Rashtriya Swasthya Bima Yojana (RSBY), Universal Health Insurance Scheme, Jan Argoya Bima Policy and Niramaya Health Insurance Scheme are exempt from GST.

Health insurance service was standard rated even in pre-GST regime and the standard rate has been continued in GST, he said.

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