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GST mop up in November at Rs 1.31 lakh crore, second highest since rollout

The GST revenues for the month of November 2021, are 25 per cent higher than November 2020, and 27 per cent higher over November 2019.

By: Express News Service | New Delhi |
Updated: December 2, 2021 12:16:14 am
The recent trend of high GST revenues has been a result of various policy and administrative measures that have been taken in the past to improve compliance. (Representative image)

Gross Goods and Services Tax (GST) revenue collections in November (for sales in October) rose 25.3 per cent year-on-year to Rs 1,31,526 crore. This is the second highest revenue mop-up under GST ever since its rollout in July 2017, and has two specific triggers: a pickup in economic activity alongside multiple compliance measures and increased surveillance undertaken by the tax authorities. These compliance measures include auto-population of returns, blocking of e-way bills and passing of input tax credit for non-filers taken by tax authorities for curbing evasion.

GST collections at Rs 1,39,708 crore in April this year, accounting for year-end sales, are the highest level so far in the indirect tax regime. Of the overall Rs 1.31 lakh crore revenue, CGST — the tax levied on intra-state supplies of goods and services by the Central government — is Rs 23,978 crore, SGST — the tax levied on intra-state supplies of both goods and services by states — is Rs 31,127 crore, IGST — tax levied on all inter-state supplies of goods and services — is Rs 66,815 crore (including Rs 32,165 crore collected on import of goods) and cess is Rs 9,606 crore (including Rs 653 crore collected on import of goods). The government has settled Rs 27,273 crore to CGST and Rs 22,655 crore to SGST from IGST as regular settlement. The total revenue of Centre and the states after regular settlements in November is Rs 51,251 crore for CGST and Rs 53,782 crore for the SGST.

The Finance Ministry said the recent trend of high GST revenues has been a result of various policy and administrative measures taken to improve compliance. “Central tax enforcement agencies, along with state counterparts have detected large tax evasion cases, mainly cases relating to fake invoices, with help of various IT tools developed by GSTN that use the return, invoice and e-way bill data to find suspicious taxpayers,” it said.

“A large number of initiatives undertaken in the last one year like, enhancement of system capacity, nudging non-filers after last date of filing of returns, auto-population of returns, blocking of e-way bills and passing of input tax credit for non-filers has led to consistent improvement in the filing of returns over the last few months,” it added.

Tax experts said the uptrend in GST revenues is likely to help the government surpass its Budget targets. MS Mani, partner, Deloitte India said, “The GST collection figures tie up with economic growth figures reported recently and indicate the collections have now stabilised at a level, which will enable crossing GST revenue targets for FY22. There has been a significant increase in GST surveillance activities in recent times based on the data available with the GSTN; these would have also contributed to the increased collections, over and above the economic growth, which is the key driver of GST collections.”

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