Central and state governments collected ?1,64,882 crore ( ?1.65 trillion) in goods and services tax (GST) revenue in December, a notch below the average so far this year of ?1.66 trillion per month, but still a 10.3% jump from a year ago. The finance ministry said in a statement that in the April-December period of this fiscal, the gross GST collection grew 12% compared to the year-ago period to ?14.97 trillion. The GST receipts in December are the lowest since October witnessed a peak of ?1.72 trillion, which was this fiscal’s second highest after a record ?1.87 trillion in April. This indicates a moderation after businesses replenished supply chains in the pre-festive months, but receipts could see a further increase closer to the fiscal year end. Barring May and August, GST receipts have remained above ?1.6 trillion this fiscal. After settlement of taxes for interstate sales, the central government collected ?70,501 crore, while the states received ?71,587 crore in December, the ministry said. Experts pointed out that a 12% growth in GST revenue would be very close to the nominal GDP growth rate this fiscal, but revenue collections as a result of GST audits and enforcement measures could add to the kitty. With multiple years’ assessments and show-cause notices getting time-barred in the current financial year, the Centre and states would possibly be expecting some revenue buoyancy to be generated by the tax administration, according to Vivek Jalan, partner, Tax Connect Advisory Services Llp, a consulting firm.
Experts pointed out that a 12% growth in GST revenue would be very close to the nominal GDP growth rate this fiscal, but revenue collections as a result of GST audits and enforcement measures could add to the kitty. With multiple years’ assessments and show-cause notices getting time-barred in the current financial year, the Centre and states would possibly be expecting some revenue buoyancy to be generated by the tax administration, according to Vivek Jalan, partner, Tax Connect Advisory Services Llp, a consulting firm. In December, large state economies such as Maharashtra, Uttar Pradesh, Karnataka and Tamil Nadu reported revenue growth in the range of 12-19%, showed data. Official data available from the GST Network had indicated that e-way bill generation required for the movement of goods within and across states had moderated in November to 87.5 million, down from over 100 million in October, the highest ever in the GST regime. The e-way bill generation trend in November gets reflected in tax collection in December to some extent. As a tax on consumption, GST revenue is seen as reflecting consumption trends in the economy, in addition to administrative efforts to step up collection. In the April-October period, consumer durables’ output, which indicates consumer sentiment and purchasing power, had seen a modest 1.4% growth from a year ago, while the output of consumer non-durables, which are more frequently purchased, saw 7.1% growth. Capital goods production and construction goods have shown robust double-digit growth in the first seven months of the fiscal.
- Livemint 2thJanuary, 2024
Comments
Post a Comment