Skip to main content

GST collection in first 9 months of its roll out at Rs 7.41 trillion

By
GST collection in first 9 months of its roll out at Rs 7.41 trillion
Goods and services tax (GST) collection in the first nine months of its roll out during 2017-18 stood at Rs 7.41 trillion, even as average monthly collection turned out lower than initial targets of the government.
The monthly average was Rs 890 billion, against the targeted Rs 920 billion. However, very close to the FY18 Revised Estimates (RE) of the Union Budget. GST was enforced from July 1.The figures issued by the government on Friday comprised Central GST (CGST) and State GST (SGST) for August-March 2017-18 and integrated GST (IGST) and compensation cess for July-March.
While the tax on domestic supplies in a month is collated through returns and gets collected the next month, the IGST and cess on import gets collected the same month. While the GST on domestic supplies was collected only from August 2017, IGST and cess on imports wa collected from July 2017.
"During 2017-18, total revenue collected was Rs 7.19 trillion," the finance ministry said. If one adds the cess and IGST collection for July, the total stood at Rs 7.41 trillion.This comprises Rs 1.19 trillion of CGST, Rs 1.72 trn of SGST, Rs 3.66 trn of IGST (including Rs 1.73 trillion on imports) and Rs 620.21 billion of cess (including Rs 57.02 billion on import).Revised Estimates in the Budget pegged collection at Rs 4.44 trillion. Actuals released by the government on Friday showed the Centre's collections at Rs 4.5 trillion.
The government has achieved the RE target on indirect tax collection for 2017-18, an official said.The Centre's GST revenue target for 2018-19 is Rs 7.43 trillion. "To achieve the estimated Budget target, growth of approximately 24 per cent would need to be achieved over the average monthly collection for FY18, which is reported at about Rs 900 billion," said Abhishek Jain, Tax Partner at consultancy EY India.
While the growth envisaged is steep, it could be possible with e-way bills and introduction of other anti-evasion measures, such as tax deducted at source and tax collected at source, he added.At the end of March, the Centre had a surplus of Rs 200 billion in its cess pool, to be utilised to compensating for states' revenue loss, an official said.
On inter-state movement of goods, as well as import, an IGST is levied, which accrues to Centre and states. A cess is levied on top of GST on the 'sin' and luxury goods, to compensate states for revenue shortfall due to implementation of GST, at the level of 14 per cent growth over base year 1collection in 2015-16.

The Business Standard, New Delhi, 28th April 2018

Comments

Post a Comment

Popular posts from this blog

Data storage norm splits digital payments industry

By
Data storage norm splits digital payments industry  India’s nascent digital payment industry could be thrown into disarray due to the demand by the Reserve Bank of India (RBI) that all user data be stored within the country, fears an industry grouping, which has termed the decision as “heavy-handed”, even as others, including the country’s largest digital payment provider Paytm, have hailed the move.  In a bid to narrow the growing schism, the industry is planning to send a formal representation to the regulator highlighting its concerns, a top official told ET.  “We are trying to build a consensus on the issue," said the person adding that the representation to the central bank will be ready this week.  RBI on April 6, mandated all payment companies—global and local—to set up data storage facilities within India by October. The stringent six-month deadline has attracted the ire of several sections of the industry that fear it will lead to a disruption of wel...
18 comments
Read more

Sebi to finalise options in commodities today

By
The Commodity Derivatives Advisory Committee of the Securities and Exchange Board of India ( Sebi) will meet on Friday with senior officials of the latter, to give a final shape to the rules on options trading in commodity futures, beside revising the warehousing norms to ensure good delivery on settlement. The decision taken, after discussing with the advisory committee, will be placed before the regulator’s board, to finalise the regulations. According to knowledgeable sources, three commodities in each segment, agricultural and non- agricultural, have been proposed for introducing options. It appears commodities from the soya and guar segments are preferred in the former. From the non- agri segment, it is likely that gold, silver and crude oil will be finalised. All these These have better liquidity and both the National Commodity and Derivatives Exchange and the Multi Commodity Exchange, respectively, will be able to introduce the options. In the equity segments, options ar...
17 comments
Read more

E tailers global warehouses may come under tax net

By
E tailers  global warehouses may come under tax net Warehouses of e-commerce companies based in countries such as Australia, Japan, Italy,  Spain, the Netherlands, and Russia may not be exempted from paying the income tax in India  once the multilateral instrument (MLI) to prevent base erosion and profit shifting (BEPS)  comes into force. BEPS refers to the reporting framework mooted by the Organisation for Economic  Co-operation and Development (OECD) and signed by over 100 countries, including India, to  prevent exploiting gaps and mismatches in tax rules to shift profits by multinational  companies (MNCs) artificially to low-tax regimes. The representatives of 68 countries on June 7 this year signed an agreement (MLI) in Paris  to amend their tax treaties to bring them in alignment with measures to prevent BEPS.  However, there is still time for synchronising tax treaties with the multilateral  instrument. India has submitte...
17 comments
Read more