VAT (Value Added TAX)

Name of the project: VAT (Gujarat VAT Information System)

 

Department under which the project was taken: Commissionerate of Commercial TAX, GoG 

Vision: Efficient, Effective, Economical and Transparent Tax Administration

 Objectives:

  • Simplify administrative procedures
  • Provide better quality of information for decision making
  • Efficient and transparent commercial tax administration
  • Improving the quality of services to the taxpayer

 Stakeholders:

  • Tax Payers
  • Tax Practitioners
  • Commercial Tax Department, Govt. of Gujarat
  • Employees of Commercial Tax Department
  • State Government

 

Project Description:

The project was initiated to ensure prompt capturing of data at its origination in digitized form so that the VAT administration could be more informed and controlled. As the VAT implementation process involving VAT returns, scrutiny, assessment and refunds get streamlined, it was envisaged that the data also gets digitized to help the administration have an in-depth analysis of information for better decision support w.r.t. strategizing the tax administration processes.

Gujarat VAT Information System (VATIS) project is logically divided into various business services, shared services, MIS and House keeping.  

Business services (e.g. Registration, Returns, and Assessments etc.) are self-contained while shared services (e.g. Tax Calculation, Alert Engine, Security etc.) are independent in nature and available across modules and tax type. MIS is linked with all the business and shared services to generate desired reports. In addition to this; framework has set of masters (e.g. commodity, location, user etc…) which is accessed by various services. The application is capable of accepting inputs from a variety of sources with data in different formats and providing outputs in required formats. The entire solution is service oriented and hence provides greater flexibility to incorporate various changes in the shortest possible time and effort. This approach also offers flexibility to deploy select modules at specific locations. VATIS provides simple and user friendly interface for all the functionalities implemented in the system. It is modular in nature and directly maps to the functional processes.

VATIS FRAMEWORK

VATIS system provides various features likes Pre-formatted document printing, Exception Reports , Tax Calculator ,Document Management System, Performance Reports ,Print ServiceBetter service levels,

Improve process efficiency, Improving Service Delivery, Increased Accountability.

 

Services offered in project:

  • e-Registration
  • e-Returns
  • e-Request for refunds
  • e-Request for amendments
  • e-Messages
  • e-Payment & Integration with Treasury
  • Online request for acquiring statutory forms
  • Online submission of statutory forms to avail green channel at all checks posts. (under development)

 

Technology:

VATIS framework has been developed on open standards -Java/J2EE technologies using OOPS concepts which provides Scalability, Maintainability, Modularity, Reusability, Portability, Performance, Security and Industry wide support. It provides web based access, horizontal and vertical scalability and SOA based hybrid architecture.

 

 

·         High Availability/Scalability Configuration – Logical Network

 

 

 

      • Disaster Recovery

                                    Working Principal

 

  

Benefits:

  • Informed decision making:
  • Improved analytical studies:
  • Increased compliance:
  • Improved administrative control:
  • Dissemination of information:

Status:

  • 5 lac payers,104 units, 25 circles, 7 divisions & 3,000 officers
  • Expenditure of 16 crores after e-governance, in last 18 months
  • Tax payers: VAT: 3.80 Lacs, CST: 2.20 Lacs
  • Revenue Growth:     

–      2006-07                  Rs. 12,868 Crores     [21%   ]

–      2005-06                  Rs. 10,650 Crores     [26%   ]

–      2004-05                  Rs.   7,235 Crores     [16%   ]

–      Target for 2007-08:  Rs. 15,430 crore     {20%} 24% rise in first half

Achievements:

  • Increase in no. of tax payers due to VAT-3 lacs to 5 lacs taxpayers
  • Growth in No. of tax returns- 14 lacs per annum
  • Cost of Collection-dropped from 1% in 04-05 to 0.65 % in 06-07
  • 11,000 dealers filed 60,000 e returns in last quarter
  • About 1, 00,000 hrs. of training
  • Pilot testing of e-payments facility through payment gateways of banks has been completed
  • Transport agencies can submit online details of inter-state movement of goods
  • High tax paying dealers can view their profile through Portal

 

Specific Achievements during the year 2006-07

  • More than 60,000 TIN generated through the system.
  • More than 32 lacs acknowledgements issued through the computerized application.
  • Detailed data entry for more than 20 lac forms.
  • Entry of 1.23 lacs forms for Tax on closing stock done.
  • e-Return started for selected 4,000 dealers.

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