STOCK MARKET BSE NSE

GST collections dip to Rs 83,346 crore in October

As many as 50.1 lakh Goods and Services Tax (GST) returns filed for October resulted in a revenue of Rs 83,346 crore, down from over Rs 92,000 crore in the previous month, a finance ministry statement

Published: 27th November 2017 09:08 PM  |   Last Updated: 28th November 2017 08:08 AM   |  A+A-

GST collections dipped to Rs 83,346 crore in October

By Express News Service

NEW DELHI: GST collections during October slipped by Rs 8,654 crore compared to the previous month, with the tax authorities laying the blame for the downward trend in collections on several factors including potential non-compliance and tax cuts implemented on several items. The finance ministry disclosed that total GST collections for October received until November 27 stand at Rs 83,346 crore. GST collections for the previous month were Rs 92,000 crore. 

According to the government, three major factors contributed to the fall in GST revenues. Firstly, the system requires Integrated GST (IGST) collected upfront for interstate transactions including those within the same company. “There was an additional cash flow of IGST in the first three months. As and when the final transaction of these goods takes place, the credit for IGST is being utilised for payment of SGST and CGST and therefore, the inflow of new taxes is low.” The second factor is the steady reduction in overall incidence of taxation since the rollout in July, with the GST Council implementing far-reaching tax cuts. This, the statement acknowledged, “would naturally have some implication on the revenues of the government”. 

The ministry also pointed out that with the tax administration of GST now based on self-declared tax return, there could be some non-compliance. “Since implementation of some of the main features of GST such as matching of returns, e-way bill as well as reverse charge mechanism has been postponed, tax compliance may not be up to the mark,” the ministry admitted. According to the statement, states have collected Rs 87,238 crore by way of SGST for August, September, October and November 2017 (as on November 27). The Centre’s collection of CGST stands at Rs 58,556 crore for the same four months. 

States have also been released a total of Rs 45,703 crore from the IGST account to account for SGST paid using IGST. Another Rs 24,501 crore has been released as compensation for revenue shortfall to states, as stipulated in the GST Act. 

Total GSTR 3B filing 

The total number of GSTR 3B returns filed for the return periods July, August, September and October 2017 stand at 58.7 lakh, 58.9 lakh, 57.3 lakh and 50.1 lakh, respectively

 



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp