Economy improving, so will GST collection: Bommai

Chief Minister Basavaraj Bommai on Monday expressed optimism about GST collection, and said there are clear signs that the economy is improving.
Karnataka CM Basavaraj Bommai (Photo | EPS)
Karnataka CM Basavaraj Bommai (Photo | EPS)

BENGALURU: Chief Minister Basavaraj Bommai on Monday expressed optimism about GST collection, and said there are clear signs that the economy is improving.  “GST collection is now about Rs 1,30,000 crore. Last month, the amount collected was encouraging, and this time too, the government expects good collection. There is a clear direction on the development of the economy. Even in the state, the economic situation is improving, and several measures are being taken to improve compliance.” 

Bommai said the state’s share in GST collection was coming in every three months. At Rs 8,259 crore, GST collection for October is encouraging and is expected to go up, compared to the rest of the country, he said. Bommai is making this statement in spite of Rs 2,000 crore revenue loss due to drop in taxes and levies on petrol and diesel.  Asked about the drop in fuel revenues, Commercial Tax Commissioner Shikha C said, “We don’t have concrete data so early, at least a month should pass. But GST collection is gradually going up,” Shikha said. It may be recalled that fuel prices were cut in the first week of  November. 

BT Manohar, State GST Committee, FKCCI, said, “The end of lockdown and other Covid restrictions have had a positive impact, and increased collection. There was a hike in demand from the public due to the festival season -- Ganesha, Dasara and Deepavali -- which helped stimulate buying. There is also greater industrial production, and curtailing of tax evasion by e-invoicing and other proactive measures. The government is allowing filing of returns without late fee.’’

Experts said GST collection is expected to go up gradually in the coming few months and stabilise. One expert said the amnesty scheme had also helped in higher GST collection. 

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