GST collections exceed Rs 1 lakh crore 2 months in a row
NEW DELHI: Collections of goods and services tax (GST) exceeded Rs 1 lakh crore for the second consecutive month, as the increase in domestic sales grew more than 20%, rather than offsetting the decrease due to weak imports.
Latest data published by the Ministry of Finance linked GST Collections to more than Rs 1.03 lakh crore during December (for sales in November) with the Center kitten growing 21.4%, while the states saw a 19.3% expansion in their participation. But a drop of almost 10% in the GST integrated into imports, indicating that shipments to the country decreased during November, resulted in the total GST revenue being 8.9% higher.
However, tax officials must work harder in the last quarter of the fiscal year to meet the objective set for the fiscal year. During a meeting, the revenue secretary had set an objective of Rs 1.1 lakh crore collections for three months, with the objective for the fourth month set at Rs 1.25 lakh crore.
The data also revealed that some of the poorest states, such as the Northeast, Bihar (12%) and UP (11%) were doing better in terms of growth, even the most developed ones like Maharashtra (22%), Gujarat (18%) and Delhi (18%) joined the party after a mediocre show in the first months.
The numbers indicate that there has been some improvement in industrial activity in November, a senior tax official said. Typically, sales of the fourth trend are higher, resulting in more taxes, as companies rush to meet the goal. While the revenue department expects collections to remain buoyant for the remaining three months, there are some concerns about February numbers, when there are fewer days and comparatively less effort to boost sales.
Pratik Jain, who leads the indirect tax practice at the PwC consultancy, said that the largest collections and presentations can be attributed in part to better compliance due to the change in the rules.