GST receipts cross Rs. 1 lakh cr

  • GST receipts cross Rs. 1 lakh cr

GST receipts cross Rs. 1 lakh cr

Total compensation released to the states for a period of eight months during 2017-18 was Rs 41,147 crore to ensure that the revenue of the states is protected at the level of 14 percent over the base year tax collection in 2015-16.

"GST collections in April exceeding Rs 1 lakh crore is a landmark achievement and a confirmation of increased economic activity as brought out by other reports", Union finance minister Arun Jaitley said in a tweet.

The official, however, said that the GST collections in May too are expected to be higher as e-way bill was implemented across the country from April 1.

GST collection in April surpassed Rs 1 lakh crore to Rs 1,03,458 crore.

As per the statement, the buoyancy in tax collection under the GST "reflects the upswing in the economy and better compliance". "It is usually noticed that in the last month of a financial year, people try to pay arrears of some of the previous months". The compliance rate for composition scheme is 59.4%.

The finance minister in his tweet congratulated all taxpayers, members of the GST Council, state and central government tax administration for this achievement. The April 2018 collection, therefore, can not be taken as a trend for the future, said the Finance Ministry. It also included Rs 579 crore paid by composition dealers for the January-March quarter. The department further noted that the Central and State Governments earned a total revenue of Rs. 32,493 crore for CGST and Rs. 40,257 crore for the SGST respectively, after settlement in the month of April.

Tax collection needs to be closer to the Rs 1 lakh crore mark to suggest strong economic activity.

Pratik Jain, indirect tax expert and partner at PwC says, "Though there would be some impact of year-end push and adjustments, it is clear that compliance is steadily improving. The pan-India rollout of the e-way bill should help to boost collections in the coming months". With many states introducing the intra-state generation of e-way bills for movement of goods, evasion is bound to reduce, eventually increasing the revenue. "All eyes to the upcoming GST council meeting on 4 May wherein the new return mechanism is expected to be announced".