NEW DELHI: The GST collection in June is likely to cross Rs 1.4 lakh crore on the back of corrective measures taken by the government to check tax evasion, a finance ministry official told The New Indian Express. Overall the tax revenue in the remaining quarters of the current fiscal will also improve as GST rates were increased on several products and the earlier exemptions under the new indirect tax were removed, the source said.
“In June, the GST collection is likely to cross Rs 1.4 lakh crore. Similarly, in the month of July too, the revenue collection is expected to exceed Rs 1.45 lakh crore. Overall, the remaining quarters will see significant improvement in the revenue collection,” the official said.
The revenue collection for the past three months has also been more than Rs 1.4 lakh crore. Some experts question the increase in GST revenue at a time when inflation has crossed the central bank’s comfort level. The consumer price index-based inflation remained above the Reserve Bank of India’s (RBI) upper band of 6% for the straight fifth month in a row.
It stood at 7.04% in May, while hitting an eight-year high of 7.79% in April post monetary policy committee (MPC) raised the repo rate and the government took fiscal measures to address supply issues. In addition, the wholesale price index-based inflation rate touched a fresh peak of 15.88% in May. It has been in double digits for the past 14 months.
The Goods and Services Tax (GST) regime will complete five years on July 1, since it was first implemented in 2016. The new indirect tax system was brought in to simplify the erstwhile mechanism of levying multiple central, state and local duties. Though it was introduced in a hurried way with many flaws, it has come a long way with loads of improvement.
“The Centre has been consistently making improvements in the GST mechanism. Significant reforms have been brought in audits and analytics to plug the loopholes in the existing system of indirect taxation,” the official added.
The rise in GST revenue collection
Revenue collection for the past 3 months has been over Rs 1.4 lakh cr. Some experts question the GST revenue rise when inflation has soared