Skip to main content

First Collection Nos Show GST Off to a Smooth Start


Integrated GST collection on imports in line with expectation, crosses 4,000 cr in first 10 days

The first set of numbers after the rollout of the goods and services tax should calm any jitters about its prospects. Integrated goods and services tax (IGST) collections on imports in the first 10 days of the new regime crossed .? 4,000 crore, in line with expectation and suggests that the rollout has been largely smooth.

“Collections would have crossed ? 4,000 crore... Data is pouring in and final tabulations will be available in some time,” a senior government official told ET.

These collections exclude levies on petroleum and natural gas products, which aren’t covered by GST in any case. Besides, the final numbers will include collections from manual filings. GST came into effect July 1.

In July 2016, total customs collections amounted to .? 16,625 crore, which on average yields ? 5,360 crore for the 10 days, but that includes basic customs duty.
The go up when manual filings are also added local product & is in addition to basic customs duty levied in lieu of excise duty, and special additional duty The Road
Ahead tax levied under GST from July 1.? 4,000 crore of IGST does not include customs duty. “On the face of it, the pace of collections looks usual,” the official
said. A detailed analysis will be carried out at the end of this month when more complete data will be available.

Collection of IGST on imports started at midnight on rollout day as the levy became payable soon after goods entered the country unless specifically exempted. IGST on imports has replaced countervailing duty (CVD), levied in lieu of excise duty, and special additional duty (SAD).

IGST is the sum of central GST and state GST levied on a local product and is in addition to the basic customs duty. It is administered by customs officials. CVD and SAD formed part of customs collections until now. The government has also done away with a number of CVD exemptions that were available in the previous regime, such as that on some electronic products.

GST replaces multiple state and central taxes such as central excise duty, service tax, CVD, valueadded tax, octroi and purchase tax with a single levy to create a
seamless national market in the country. As many as17 taxes and 23 cesses have been folded into one levy.

The Economic Times, New Delhi, 13th July 2017

Comments

Popular posts from this blog

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

RBI rushes in to prop up falling rupee

RBI rushes in to prop up falling rupee India’s central bank reportedly intervened in the currency markets on Monday to prevent a further slide in the local unit, which breached the 67 mark to a dollar for the first time in 15 months amid a widening trade gap and runaway import bills fuelled by high crude-oil prices. Some state-owned banks were seen selling dollars aggressively, interventions that market dealers attributed to the central bank’s strategy to stem the decline of the Indian rupee against the US currency. The rupee is the worst performing among a dozen Asian monetary units in the past three months. It lost 4.25 per cent to the dollar during the period, show data from Bloomberg. On Monday, the Reserve Bank of India (RBI) is said to have sold about Rs 800 million collectively on the spot and exchange traded futures markets, dealers said. An email sent to RBI remained unanswered until the publication of this report. The currency market has seen such a strong central bank interven…

GST Refund of Rs 20,000 Cr Pending: Exporters’ Body

GST Refund of Rs  20,000 Cr Pending: Exporters’ Body Refund of over Rs 20,000 crore on account of Goods and Services Tax (GST) is pending with the government with more than half the amount stuck as input tax credit, Federation of Indian Export Organisations said on Tuesday. While claims over Rs7,000 crore were cleared in March, the amount was Rs 1,000 crore in April.However, after exporters’ request, the GST council and tax department are organizing a second phase of Special Refund Fortnight starting May 31, which will enable exporters to draw their refunds at a speedy pace. Many exporters have been unable to file the refund of input tax credit due to technical glitches, exports and claim happened in different months. The major challenge lies on ITC refund especially because the process is partly electronic and partly manual which is cumbersome and add to the transaction cost, the exporters’ body said. On IGST, refunds are getting delayed due to airline and shipping companies not submitt…