THE STATE Goods and Services Tax (GST) department has seen a gradual increase in Integrated GST settlements since August. In November alone, the state received settlements worth Rs 1,680 crore from the central government, an increase from Rs 1,001 crore in August, according to data from the department.
While in August, the state received Rs 1,001.43 crore as settlements, the amount increased to Rs 1,267 crore in September and Rs 1,440 in October.
Integrated GST is a tax levied on all inter-state supplies of goods and services. As GST is a consumption-based tax, it should be received by the state in which the goods or services are consumed and not by the state in which such goods are manufactured.
The central GST is apportioned to the Centre on the rate of CGST on similar intra-state supply and the balance is apportioned to the state where the supply is consumed. Officials in the department said the trend was a reflection of an upswing in consumption of goods and services in the past couple of months. “After the GST was launched, it was said that consumption had gone down. But the settlement could imply that consumption is picking up slowly again,” said an official.
Rajeev Jalota, the GST Commissioner, Maharashtra, said the settlement was likely to increase in the coming months.“Maharashtra is a state that is heavy on consumption. There are more credits with the central government that have not been disbursed yet. We expect to see a rise in our settlements in the next couple of months,” he said.