GST Collections Drop Below Rs 1 Lakh Crore In October
The government's goods and services tax collections dropped below Rs 1 lakh crore in October, suggesting that collections have still not risen to the desired level.
GST collections in October were at Rs 97,637 crore, finance ministry said in a statement. This compares with Rs 1 lakh crore collected in September and Rs 94,442 crore in August.
According to budget documents, the government's GST collection target is set at Rs 13.47 lakh crore. This has been calculated considering SGST collected by all states will be equal to CGST, as GST is equally split between the consuming state and the centre. So far GST collections for the current financial year are at Rs 6.72 lakh crore.
While GST collection in October has fallen vis-a-vis the earlier month, it is higher than the average monthly collection in the year. This steady increase in average collection gives hope that regular monthly collections will hit Rs 1 lakh crore soon.Abhishek Jain, Indirect Tax Partner, EY India.
Compliance during the festive month improved. 69.6 lakh GSTR-3B returns were filed as on November 30, compared to 67.45 lakh returns filed for the month of September.
The tax collected under various heads includes:
- Central GST of Rs 16,812 crore.
- State GST of Rs 23,070 crore.
- Integrated GST stood of Rs 49,726 crore.
- Compensation cess of Rs 8,031 crore.
Post settlement of IGST funds based on end consumption, CGST collected in October was Rs 35,073 crore, while SGST was Rs 38,774 crore.
The central government also released Rs 11,922 to states as GST compensation for the months of August-September 2018. Central government compensates states bi-monthly for the losses they incur in the first 5 years of GST implemention. The compensation is calculated based on an annual increase of 14 percent in taxes subsumed under GST keeping 2015-16 as the base year.
GST collections seem to have witnessed an upward trend over the last few months, leaving aside an exceptional last month which saw higher collections due to the festive season, said Krishan Arora, an indirect tax partner at Grant Thornton India LLP. He added that the consistent efforts made by government have also resulted in better compliance by taxpayers.
Stretched Finances?
GST collections have remained below expectations so far this financial year, adding to uncertainty over the government's ability to meet its fiscal deficit target of 3.3 percent of GDP. Data released on Friday showed that the government had already exceeded its fiscal deficit target in the April-October period.
In a note released earlier this week, India Ratings said that it expects the fiscal deficit to once again touch 3.5 percent of GDP.
“The pressure on government finances is mainly arising from the revenue side, particularly from indirect taxes and non-tax revenue. India Ratings' estimate suggests a tax revenue shortfall of Rs 22,400 crore, which is expected to originate from indirect taxes,” said Devendra Kumar Pant, chief economist at India Ratings.
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
