Collection from Goods and Services Tax (GST) has crossed Rs 94,000 crore in September. However, it is still below the Government’s estimate of Rs 1-1.10 lakh crore, as it aims to collect Rs 13 lakh crore during the current fiscal i.e. 2018-19.
A Finance Ministry statement issued on Monday, said the revenues collected in September of Rs 94,442 crore, shows an upward trend as compared to that in August 2018 at Rs 93,690 crore.
This is the first full month of revenue collection after GST was lowered on approximately 100 products w.e.f. July 27. Though the Government did not reveal the revenue loss on account of the cut, it was estimated that it could go up to Rs 10,000 crore per annum and if the duty benefit restored to the textile sector was included, the total outgo could go up to Rs 15,000 crore.
Of the total collection, CGST (Central Goods and Services Tax) is Rs 15,318 crore, SGST (State Goods and Services Tax) Rs 21,061 crore, IGST (integrated Goods and Services Tax) Rs 50,070 crore (including Rs. 25,308 crore collected on imports) and cess Rs 7,993 crore (including Rs 769 crore collected on imports). The total number of GSTR 3B Returns filed for August up to September 30 was Rs 67 lakh.
The total revenue earned by the Central Government and the state governments after settlement in September 2018 was Rs 30,574 crore for CGST and Rs 35,015 crore for SGST.
Just last week, the GST Council, under the chairmanship of Finance Minister Arun Jaitley, reviewed the revenue position of states. It was found that 25 states and union territories have reported a shortfall and six states a surplus in GST collection during the first five months of this fiscal, despite the national average shortfall narrowing down to 13 per cent from 16 per cent in July 2017-March 2018. Leading the ranks in shortfall in GST collection were Puducherry with 42 per cent. Reporting surpluses were Andhra Pradesh and the five north-eastern states.
The shortfall is calculated on the basis of a projected growth rate of 14 per cent. States are compensated fully for the shortfall through a compensation cess that a Constitutional Amendment has assured for five years.
The Government is still hopeful of meeting the target. “We are in the middle of the year…the festival season is coming…We will try and come as close to the target (as possible),” Finance Minister Arun Jaitley said last Friday. Since October and November are festival months, there are expectations that demand will go up and so also tax collection.>