Comprising about 24 per cent of the total cess collections of Rs 30,224 crore under the Goods and Services Tax (GST) regime, Maharashtra and Uttar Pradesh are the top contributors among states and Union Territories in the first five months of the rollout of the GST regime.
Maharashtra garnered Rs 3,702 crore and Uttar Pradesh collected Rs 3,549 crore through cess levied on sin and luxury goods since the July 1 rollout of the new indirect tax regime, Minister of State for Finance Shiv Pratap Shukla said in reply to a question in Lok Sabha on Friday. The individual contribution of these two states is even higher than the cess collected through imports, which stands at Rs 2,604 crore.
Karnataka ranks third with cess collection of Rs 3,110 crore, followed by Chhattisgarh that raised Rs 2,288 crore as cess till November 30, the data provided by the government showed.
Maharashtra also has the highest State GST (SGST) collections of Rs 18,701 crore during July-November, the data showed. Tamil Nadu is at the second spot, having collected Rs 8,739 crore, about half of the SGST amount raised by Maharashtra.
The two manufacturing states are closely followed by Karnataka and Gujarat with SGST collections of Rs 7,736 crore and Rs 7,375 crore, respectively.
The government has garnered Rs 30,224 crore as cess from July 1-November 30, the data showed. About Rs 59,048 crore has been collected as Central GST (CGST) and Rs 87,888 crore has been collected as SGST in the first five months of the GST regime.
An amount of Rs 1.91 lakh crore has been collected as Integrated GST (IGST) till November 30. Out of the total IGST collection of Rs 1.91 lakh crore, Rs 90,038 crore has been collected through imports. The high unutilised IGST will be set off by GST taxpayers against their tax liabilities of IGST,CGST and SGST, in that order, in the coming months and is likely to result in lower collections via CGST and SGST payments, as was seen in October revenue collections.
The GST regime, which was implemented from July 1, has tax slabs of 0, 5, 12, 18 and 28 per cent. Additional cess ranging from 1 to 290 per cent is levied over and above the highest tax rate of 28 per cent on sin
and luxury goods such as tobacco, cigarettes and luxury cars. The amount collected through cess flows into compensation fund, which is used to compensate states for revenue losses on account of implementation of GST.
As per Section 7 of the Goods and Services Tax (Compensation to States) Act, 2017, states and Union Territories with
legislatures have to be compensated for revenue losses arising out of implementation of GST during the five-year transition period beginning from the date on which the SGST Act of the concerned state has come into force.
The GST (Compensation to the States for Loss of Revenue) Act has projected the revenue growth for states during the five-year transition period to be 14 per cent and the financial year of 2015-16 has been fixed as the base year for calculation of compensation amount, with the base year tax revenue including states’ tax revenues from state VAT, Central sales tax, entry tax, octroi, local body tax, taxes on luxuries, taxes on advertisements.
However, any revenue among these taxes related to supply of alcohol for human consumption, entertainment tax levied by the states but collected by local bodies and petroleum products not part of GST will be excluded from the base year revenue.
As per the data provided by government in Lok Sabha, 93.33 lakh taxpayers have registered under the new GST regime till October 31. Out of total 93.33 lakh registrants, 64.38 lakh taxpayers migrated from the earlier excise and VAT system, while 28.94 lakh are new registrants in the GST regime.