Commercial Tax Department is an important agency for tax collection in the state. Commercial Tax is currently referred to as Goods and Services Tax (GST), came into force as a consolidated tax on supply of goods and services w.e.f. 01-07-2017, thereafter, tax is being collected on goods and services covered by GST, VAT payable till June 2017, CST and revenue have been collected under the State Tax Act. Petrol, diesel, crude oil, aircraft fuel, natural gas, liquor for human use are kept outside the purview of GST, and these items are taxed as before i.e. as per provisions of UPVAT Act, 2008.
In the year 2019-20, the consolidated revenue of GST and VAT has been collected to Rs. 72931.36 Cr. . Annual target for the year 2020-21 is Rs. 91568Cr.
Evolution of taxation system in the Commercial Tax Department:
Since the inception of the department, series of decisions have been taken which have contributed significantly to shape the present form of the department. Some such decisions are mentioned as follows:
- The multi-pronged tax system was introduced in the year 1948, in the year 1952 certain specific items were brought under a one-point system and in the year 1975, the multidimensional tax system was abolished and single-point taxation was made.
- The first unit of the Special Investigation Branch was opened in Kanpur in the year 1954.
- Sales Tax Tribunal was constituted in the year 1980.
- Entry tax commenced in the year 1999.
- Floor rate system was introduced in 2000, also, new units exemption was eliminated.
- Merchant Accident Insurance Scheme was launched for registered traders in the year 2000-01.
- Tax collected from sale of motor spirit, was transferred from the State Excise Department Uttar Pradesh to the Trade Tax Department in the year 2000-01.
- Development tax was imposed in the year 2005-06, which was effective till December 2007, before the introduction of VAT.
- Uttar Pradesh Value Added Tax System (VAT) was implemented in the year 2007-08 from the date of 01-01-2008.
- The commercial tax check post system of the state ended from the midnight 30July 2009.
- E-payment facility for commercial tax revenue collection was started by SBI and PNB in the year 2009-10. In the year 2009-10, a provision of e-return was made for traders with turnover above Rs. 1 crore.
- National e-way bill for interstate transportation was implemented from 01-04-2018.
- From 15-04-2018, E-way bill for intrastate transportation was implemented.
- From 01-04-2019, the registration limit under GST has been increased from Rs 20 lakh to Rs 40 lakh and the Samadhan traders have been increased from Rs 1 crore to Rs 1.50 crore.
- SamadhanYojana of 5 percent was introduced for traders up to Rs. 50 lakh turnover in service sector from 01-04-2019.
- Formation of Uttar Pradesh Merchant Welfare Board by Government Order dated 24-12-2014.
- ’’भ्रमरा इव पादपम्’’
- Collection of Goods and Services Tax in Uttar Pradesh under the rights conferred by the GST Act.
- Collection of tax payable on non-GST goods under VAT Act.
- Promote the industries of the state.
- Protecting the interests of traders.
The organization of the Commercial Tax Department is mainly divided into three functionalities.
Administrative / tax assessment work
This isCommercialTax Department under the State Tax (erstwhile - Tax and Registration department) Department of Uttar Pradesh government. The department functions under the general administrative control of Additional Chief Secretary and is headed by the Commissioner.
For smooth operational and administrative convenience of departmental works, the Department is structured into 20 Zones, 75 Divisions and 446 Sector offices within the geographical boundary of the state. Commercial Taxes Divisional Offices are established at 93 sites.
To promote Ease of Doing Business for big tax payers, 21 corporate circles are set up in all zones and one Oil Corporate circle is established at Headquarter, Lucknow.
In the department, 56 judicial divisions of Additional Commissioner Grade-2 (Appeal) are set up at various divisional offices to file the first appeal against the assessment order passed under UPVAT Act, 2008.
This forum is constituted for disposal of appeals against orders passed by First Appeal. The cases are heard by Trade Tax Tribunal, Uttar Pradesh, established dated: 03/10/1980, headquartered in Lucknow. The Commercial Tax Tribunal has 31 benches in Uttar Pradesh. Tribunal is headed by Honourable Chairman, who belongs to Higher Judicial Services cadre.
Commercial Tax revenue collection :
Commercial tax revenue collection in previous years has been as under: -
|Serial No.||Year||Revenue collection||Increased fundsfrom previous year|
Enforcement work :-
For effective control over tax evasionand to implement disciplined taxation behaviour, Offices of Additional Commissioner Grade-2 (SIB / Enforcement) are established at Zonal level in all 20 zones of the State, under them are the offices of Joint Commissioner (SIB) at the Range level. All these officers control and monitor the work of the Mobile teams and SIB units of their respective jurisdictions.
In the state, 148Mobile squad units are functioning in all the Zonal offices and 02are at Commercial Tax Headquarter; in total, there are 150 Mobile squad units and 45 Special Investigation Branch ( S.I.B.) enforcement units.
Chief Minister Merchant Accident Insurance Scheme for registered traders:-
- To prevent tax evasion and to motivate the traders to duly & timely pay Goods and Services Tax, Chief Minister Merchant Accident Insurance Scheme is launched. Under this scheme, all the traders registered in the department are automatically covered. The premium related to this Insurance Scheme is paid by the state government.
- Under this scheme, the sum assured is paid to the nominee / heir of the registered businessman / trader himself in case of death of the registered trader and death due to accident / partial and total disability.
- In the year 2017-18, The Oriental Insurance Company Limited, Lucknow was selected for the said scheme from 15-06-2017 to 14-06-2018, i.e. for one year. During this period the family of the eligible 115 merchants had been paid by this insurance company.
- The corpus of this Scheme has been increased fromRs. 5 Lakh to Rs. 10 Lakh w.e.f 27-10-2017
- From 15-06-2017, the said insurance scheme is operated by the department itself, in which the beneficiary is being given a sum of Rs 10 lakh from the government by the department.
- In the year 2019-20, 143 traders' families have benefited.