Skip to main content

GST collection in December rises 10% YoY to ?1.65 lakh crore

By

 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

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more