Skip to main content

GST collections in October decline to Rs 83346 crore

GST collections in October decline to Rs 83346 crore
India’s goods and services tax collections fell to Rs 83,346 crore in October, from more than Rs 90,000 crore in each of the first three months after the new tax regime was rolled out on July 1. 
A finance ministry statement attributed the lower collections to the release of state and central GST out of integrated GST (IGST) paid in the first three months, reduction in taxes and payment of GST based on self-declared tax return. 
So far, 95.9 lakh taxpayers have registered under GST, of which 15.1lakh are composition dealers who are required to file returns every quarter. As many as 50.1lakh returns were filed for October till November 26, the statement said. 
“While the overall collection for the October month is lower, this may not be a cause of immediate concern as it might be due to refunds given to exporters and opening credit claimed by businesses, along with some reduction in the rate in October,” said Pratik Jain, leader-indirect tax, PwC. 
“The collection for November may also be on the lower side due to substantial rate cuts from mid of the month. While to a large extent the shortfall is likely to be offset by increase in demand, the results may take another 2-3 months to become visible.” 
BREAKUP OF GST 
States collected Rs 87,238 crore of SGST in July, August, September and October, it said. States get a share in th e IGST collection from inter-state trade when IGST collected is used for payment of SGST. By way of such share, states received Rs 31,821 crore for August, September and October, and Rs 13,882 crores far October. 
The states are also entitled to a compensation for loss of revenue from the rollout of GST. A compensation amount of Rs 10,806 crore has been released to the states for July and August 2017 and Rs 13,695 crore for September and October. 
“States’ revenues have thus been fully protected, taking base year revenue as 2015-16 and providing for a projected revenue growth rate of 14 per cent ,” the statement said. This adds up to Rs 1.57 lakh crore for states. The Centre’s revenue on account of GST in July, August, September and October added up to Rs 58,556 crore. 
In addition to this, the statement said, Rs 16,233 crore had been transferred from the IGST account to CGST for the first three months and Rs 10,145 crore for October. “Taxpayers are using the balance credit available with them in the previous tax regime,” the statement said. 
LOW REVENUES
The government has offered three reasons for revenues to be lower in October. One, the first-time requirement of paying IGST on transfer of goods from one state to another state, even within the same company. 
This meant an additional cash flow of IGST in the first three months, but the same was not being utilised for paying CGST and SGST when the final transaction of these goods took place. Two, the overall incidence of taxes on most of the commodities had come down under GST. 
Three, because GST is now based on self-declared tax return, the assesse decided on his own how much tax liability he had and claimed input tax credit as per his own calculations.
The Economic Times, New Delhi, 28th November 2017

Comments

Popular posts from this blog

At 18%, GST Rate to be Less Taxing for Most Goods

About 70% of all goods and some consumer durables likely to cost less

A number of goods such as cosmetics, shaving creams, shampoo, toothpaste, soap, plastics, paints and some consumer durables could become cheaper under the proposed goods and services tax (GST) regime as most items are likely to be subject to the rate of 18% rather than the higher one of 28%.

India is likely to rely on the effective tax rate currently applicable on a commodity to get a fix on the GST slab, said a government official, allowing most goods to make it to the lower bracket.

For instance, if an item comes within the 12% excise slab but the effective tax is 8% due to abatement, then the latter will be considered for GST fitment.

Going by this formulation, about 70% of all goods could fall in the 18% bracket.

The GST Council has finalised a four-tier tax structure of 5%, 12%, 18% and 28% but has left room for the highest slab to be pegged at 40%. A committee of officials will work out the fitment and the council…

Coffee-Toffee, the GST Debate Continues

Hundreds of crores of rupees in the form of taxes ride on the exact categorisation of products Is Parachute hair oil or edible oil? Is KitKat a chocolate or a biscuit? Is a Vicks tablet medicament or confectionery? For the taxpayer and the tax collector, this is much more than an exercise in semantics -hundreds of crores of rupees ride on the exact categorisation.
As the government moves closer to rolling out the goods and services tax (GST) on July 1, many such distinctions are being debated so that no ambiguity remains. Not just that, the government is revisiting old tax cases that were lost over product categorisation, according to people with knowledge of the matter, presumably with a view to making sure that revenue collections can be maximised. “In the past, several tax officers had challenged some of the product categorisations, including those in the retail segment, but lost out in court or at appellate level,“ said one of the persons. “Now we have a chance to go ahead with speci…

Deposit gush:-CA Institute Bats for Special Audit