NEW DELHI: The gross GST collection in November grew at 8.5% year-on-year to R1.82 lakh crore largely on the back of healthy accrual from domestic transactions. However, it is lower than the October collection of R1.87 lakh crore, which was the second highest monthly collection recorded in GST. The domestic GST revenue grew by 9.4% during the month, while import GST revenue growth of 5.4%.
This is the third month in a row that gross GST collections have shown single digit growth, showing that a fatigue has set in as far as GST collections have been concerned. Even the festive months of October (when gross collections showed a growth of 8.9%) and November have failed to give a boost to the collections.
However, net GST collections (net off refunds) grew by 11.1% to R1.63 lakh crore as refunds during the period declined by 9%. Total gross collections in the April-November period grew by 9.3% to R14.56 lakh crore, while net collections during the period grew by 9.2% to R12.91 lakh crore. According to Vivek Jalan, Partner, Tax Connect Advisory Services LLP, the divergence in growth of income tax (15%) and GST (9.3%) in the April-November period seem to suggest that even if income levels are growing in India, consumption is not aligned accordingly.
“…the year-to-date GST collections growth is also below the budgeted growth,” says Jalan, adding that this may require some food for thought for the GST Council as it meets on 21 December. MS Mani, Partner, Deloitte India, highlights the fact that slower growth in some large states like Haryana (2%), UP & MP (5%), as well the negative growth in Rajasthan (-1%) & AP (-10%).This should be an area of concern as these states have significant manufacturing presence, he says.