October 2, 2018 3:06:27 am
Goods and Services Tax (GST) collections increased marginally to Rs 94,442 crore in September (for August) from Rs 93,960 crore in the previous month but below the monthly target of Rs 1 lakh crore. The compliance rate remained broadly remained at the same level as previous month with 67 lakh businesses filing GST returns in September, data released by Finance Ministry on Monday showed.
In the first half of this financial year, the government has collected Rs 5,77,970 crore from GST–Rs 1,03,459 in April (for March), Rs 94,016 crore in May (for April), Rs 95,610 crore in June (for May), Rs 96,483 crore in July (for June), Rs 93,960 crore in August (for July) and Rs 94,442 crore in September (for August). This implies an average monthly collection of Rs 96,328 crore.
Of Rs 94,442 crore collected in September, Central GST (CGST) collection is Rs 15,318 crore, State GST (SGST) is Rs 21,061 crore, Integrated GST (IGST) is Rs 50,070 crore (including Rs 25,308 crore collected on imports) and cess is Rs 7,993 crore (including Rs 769 crore collected on imports), the ministry said.
“The total revenue earned by the central government and the state governments after settlement in September 2018 is Rs 30,574 crore for CGST and Rs 35,015 crore for SGST,” it added.
The September revenue collections reflect the purchase and sales activities conducted in the month of August.
Tax experts said the collections seem to have stabilised around this level even though there was a significant round of rate cut in July but in absence of a major revenue pickup, the government may not allow further relaxations on the compliance side.
Sachin Menon, Partner and Head, Indirect Tax, KPMG in India, said, “The buoyancy in GST collection is the key to further concessions in GST regime such as relaxing input credits restrictions and rates. Since the revenue trend not picking up, we may have to wait longer for any further concessions in law and compliance process.”
In the coming months though, GST revenues are expected to pick up owing to onset of festival season. Deloitte India Partner M S Mani said, “It appears that the volume increases expected due to the rate reductions from 28 per cent to 18 per cent have not yet materialised, possibly due to the delayed onset of the festive season, which has commenced in September this year. The collections are expected to improve in the coming months on account of the festive season sales uptick and the movement to an invoice matching process,” Mani said.
Effective July 27, the GST Council cut rates on 88 items, including sanitary napkins, fridge, small screen TV, washing machine, footwear, among others. Only 35 items were left in the highest tax bracket of 28 per cent after the rate cut.
The Finance Ministry has targeted monthly GST collections of Rs 1 lakh crore for this fiscal but the actual number has fallen short of the target month after month, except April when the mop-up exceeded Rs 1 lakh crore.
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