Explained: GST collection surges in November, what it means

 









Gross Goods and Services Tax (GST) revenue collections in November (for sales in October) rose 25.3 per cent year-on-year to Rs 1,31,526 crore. This is the second highest revenue collection under GST ever since its rollout in July 2017, and has two specific triggers: a pickup in economic activity alongside multiple compliance measures and increased surveillance undertaken by the tax authorities. These compliance measures include auto-population of returns, blocking of e-way bills and passing of input tax credit for non-filers taken by tax authorities for curbing evasion. GST collections at Rs 1,41,384 crore in April this year, accounting for year-end sales, are the highest level so far in the indirect tax regime.
How much are the GST collections?

Gross GST revenue collected in November is Rs 1,31,526 crore, out of which CGST — the tax levied on intra state supplies of both goods and services by the Central Government — is Rs 23,978 crore, SGST — the tax levied on intra state supplies of both goods and services by the states — is Rs 31,127 crore, IGST — tax levied on all inter-state supplies of goods and services — is Rs 66,815 crore (including Rs 32,165 crore collected on import of goods) and cess is Rs 9,606 crore (including Rs 653 crore collected on import of goods).

The government has settled Rs 27,273 crore to CGST and Rs 22,655 crore to SGST from IGST as regular settlement. The total revenue of Centre and the states after regular settlements in the month of November 2021 is Rs 51,251 crore for CGST and Rs 53,782 crore for the SGST. Centre has also released Rs 17,000 crore to States/UTs towards GST compensation on November 3.

Gross GST revenues have stayed above Rs 1.30 lakh crore mark for the second straight month. The revenues for November are 25 per cent higher than the GST revenues in the same month last year and 27 per cent over 2019-20. During the month, revenues from import of goods were 43 per cent higher and the revenues from domestic transactions (including import of services) were 20 per cent higher than the revenues from these sources during the same month last year.

For GST revenues collected in the respective regions, states such as Maharashtra posted a 24 per cent growth in GST revenues in November, Karnataka posted 31 per cent growth, Gujarat posted 26 per cent growth and Tamil Nadu posted 10 per cent growth.

Tax experts said the uptrend in GST revenues has come in line with economic recovery and a significant increase in surveillance activities by tax authorities. The rise in GST revenues is likely to help the government to surpass its Budget targets.

MS Mani, Partner, Deloitte India said, “The GST collection figures tie up with the economic growth figures reported recently and indicate that the collections have now stabilised at a level which will enable crossing the GST revenue targets for FY22. There has been a significant increase in the GST surveillance activities in recent times based on the data available with the GSTN; these would have also contributed to the increased collections, over and above the economic growth, which is the key driver of GST collections.”





Comments

Post a Comment

Popular posts from this blog

Centre appeals against ruling on levy of GST on maintenance charges to resident welfare associations

Image
  The Centre has preferred a writ appeal before the Madras High Court against a single judge's order that flat or villa owners paying more than ₹7,500 a month towards maintenance charges to their residents’ welfare associations must pay Goods and Services Tax (GST) at the rate of 18% only for the amount exceeding ₹7,500 and not for the entire monthly contribution. Justices T.S. Sivagnanam and Sathi Kumar Sukumara Kurup on Wednesday allowed an application filed by the Centre to dispense with production of a certified copy of the judgment passed by Justice Anita Sumanth recently and directed the Registry to list the appeal for admission in the usual course. Justice Sumanth had in July this year quashed an order passed by the Authority for Advance Ruling (AAR) on June 21, 2019 as well as a consequent circular issued by the Department of Revenue under the Union Finance Ministry on July 22, 2019 since both of them had insisted upon collecting GST for entire monthly contribution. The jud...
Read more

Seven key things to know before filing income tax return (ITR) for FY21

Image
  The last date to file income tax return for the financial year 2020-21 has been extended to September 30, 2021. Although there is more than two months left for the deadline to end, it is always recommended to complete the task as soon as possible and not to wait for the last minute. Worth mentioning here is that the income tax department last month launched a new e-filing portal (www.incometax.gov.in) to speed up the processing of tax returns. The I-T department will soon launch a mobile application, having all the features of the new portal. This year taxpayers have to take care of the following changes in the ITR filing process. 1) A new utility named JSON has been launched for filing tax return forms for FY21. At present, only three forms, ITR 1, 2 and 4 have been released. These new forms will import pre-fill data such as personal details, salary income, dividend income, interest income, capital gains and all the information available in Form 26AS. 2) Taxpayers will have the ...
Read more

Income Tax Dept detects ₹350 cr unaccounted cash receipts after raid in Rajkot

Image
  The Income Tax Department carried out a search and seizure operation on a real estate group based in Gujarat's Rajkot and found unaccounted cash receipts in various projects of approximately ₹350 crore, the Finance Ministry said on Friday. The group is among Gujarat’s prominent real estate builders and developers and is actively engaged in real estate, construction and land trading businesses in and around Rajkot. More than 40 premises were covered in the search operation. During the course of operation, many incriminating documents and digital evidences were seized indicating involvement of the group in unaccounted transactions. The IT sleuths found substantial evidence of transactions outside the regular books of accounts, unaccounted cash expenses, cash advances received and interest paid in cash. Evidence of on-money payments in real estate projects-flats, shops and land deals has also been found. Total unaccounted cash receipts in various projects of approximately ₹350 crore...
Read more