Gross Goods and Services Tax (GST) revenue collection in October (for September sales)) It rose by 23.7 per cent year-on-year to Rs.1,30,127 crore. This is the second highest GST revenue collection ever since it was introduced in July 2017, and comes on the back of a rebound in economic activity and several compliance measures the tax authorities have taken to curb evasion.
Goods and Services Tax (GST) collections at Rs 1,41,384 crore in April of this year, representing year-end sales, are the highest collections so far in the indirect tax system.
How are the different GST components made?
The total GST revenue collected in October was Rs 1,30,127 crore, of which CGST is Rs 23,861 crore, SGST Rs Rs 30,421 crore, and IGST is Rs 67,361 crore (including 32,998 crore). Rs. 8,484 crore collected on import of goods) and taxes Rs 8,484 crore. (Including Rs 699 crore collected on import of goods).
The government has settled Rs 27,310 crore to CGST and Rs 22,394 crore to SGST from IGST as regular settlement. The total revenue of the Center and States after normal settlements in October 2021 is Rs.51,171 crore for CGST and Rs.52,815 crore for SGST.
Minister of Finance Nirmala Sitharaman In a tweet he said, “October 2021 GST collection recorded the second highest rate since implementation of total GST revenue collected in October. Revenue… in October 2021 is 24% higher than GST revenue in Same month last year and 36% compared to 19-20.
What does the trend indicate?
The pace of GST revenue accelerated, posting 24 percent year-over-year growth and 36 percent growth during the pre-pandemic period of 2019-20. The Ministry of Finance said this growth in collection is “largely in line with the prevailing trend of economic recovery”.
“October’s GST revenue was the second-highest on record since the introduction of GST, second only to that in April 2021, which relates to year-end revenue. This is largely in line with the prevailing trend in economic recovery. This is also evident. of the trend in electronic payment bonds being created every month since the second wave.Revenue would have been higher if sales of cars and other products had not been affected by the outage of semiconductors, she said.
The data released by the Ministry of Finance also showed that the timely payment of taxes has increased compared to the previous months. Of the total returns presented, the share of returns for the current period deposited in each month increased. In July, 1.5 crore filings were filed as taxpayers filed last months’ returns due to deadline extension due to Covid.
What measures are being taken to ensure the highest compliance? What is the expected future direction?
State and central tax authorities take steps to enhance compliance and reduce evasion. The Ministry of Finance said that measures have been taken to facilitate compliance such as not submitting files through SMS, allowing quarterly return monthly payment system (QRMP) and automatic return counting.
Tax authorities have also taken steps to prevent electronic billing for failure to file returns, a system-based suspension of recording taxpayers who have failed to file six returns in a row, and a credit ban for defaulting returns.
For GST revenues collected in the respective regions, states like Maharashtra recorded 23 percent growth in GST revenues in October, Tamil Nadu recorded 11 percent growth, Gujarat recorded 25 percent growth and Karnataka recorded 18 percent growth. .
Tax experts said the uptrend in GST revenue is likely to continue in the coming months due to the holiday season. Abhishek Jain, Tax Partner, EY India, said, “The robust GST collections are very encouraging and a clear sign of economic recovery. As the festive season continues, we can expect similar or even higher GST collections in the coming months.”