Skip to main content

Festive season likely to drive GST collections past Rs 1 trillion in Nov

By
The finance ministry expects the GST collections to cross Rs 1 trillion in November and December on account of festive season demand and the anti-evasion measures initiated by the revenue department. The Goods and Services Tax (GST) revenue rose to Rs 944.42 billion in September and officials feel it could surpass the landmark 1 trillion on increased demand during festival season. "With the current trend for GST mop-up, it is expected that the monthly collections could again touch Rs 1 trillion around November and December," an official said.
The collections during November and December 2018 would reflect the sales and purchases made during the months of October and November 2018. According to the official, people usually hold back their purchases till Ganesh Chaturthi, which marks the onset of festive season and fell in September this year. Besides, the revenue department's initiative to plug loopholes in the system to curb evasion too would help in raising revenue.
"The GST collection should cross Rs 1 trillion because of festive season demand. This is the time when people make purchases and companies offer discounts and come up with promotional offers to boost sales. We expect increase in sales which in turn will result in higher revenues for the government," said Lakshmikumaran & Sridharan Partner L Badri Narayanan. AMRG & Associates Partner Rajat Mohan said the duo of Indian festivities and wedding season would push the overall demand, temporarily lifting the GST collections for November and December.
"Controlling fiscal deficit with the help of an increase in revenue collection is economically more feasible option than restricting government spending, even if this increase by means of implementing stringent anti-evasion measure," Mohan said. The finance ministry official, however, has expressed the apprehension that revenues could witness a decline thereafter as sales and purchases usually taper off in the last quarter of fiscal.
The finance ministry has targeted monthly GST collections to be Rs 1 trillion for this fiscal, but the actual mop-up has fallen short of the target month after month. The sole exception was the month of April in which the numbers exceeded Rs 1 trillion.The collections stood at Rs 940.16 billion in May, Rs 956.10 billion in June, Rs 964.83 billion in July, Rs 939.60 billion in August and Rs 944.42 billion in September.

The Business Standard, 03th October 2018

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

By
  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...
Post a Comment
Read more