April GST kitty goes past ₹1.67 lakh crore

 









India’s gross Goods and Services Tax (GST) revenues hit a fresh high of ₹1,67,540 crore in April, with revenues from goods imports rising 30% year-on-year and domestic transactions along with services imports rising 17%.

The Finance Ministry said that April’s revenues for transactions undertaken in March, reflect a ‘faster recovery’ of business activity, while industry experts attributed part of the surge to a massive uptick in input costs for producers some of which is also visible in high retail prices, as well as new, tighter input credit norms.

Overall GST revenues were 20% higher than a year ago, and 17.9% higher than March 2022 collections of ₹1,42,095 crore with 7.7 crore e-way bills generated in March, 13% higher than February 2022. “For the first time, gross GST collection has crossed ₹1.5 lakh crore mark,” it said.
‘Multiple favourable factors’

“While the GST collections in respect of March have always been high, the record collections are due to multiple favourable factors, including the recent changes on permitting input tax credits only upon timely compliance by the vendors,” said Deloitte India partner M.S. Mani.

Vivek Jalan, partner at Tax Connect Advisory, said the higher revenues not only reflect the continuing economic recovery, but also the tremendous price rise in input costs and the implementation of GSTR 2B under which a recipient can only take credit for inputs, whose suppliers have filed their returns.

Central GST revenues constituted ₹33,159 crore of April’s gross revenues from the tax, while State GST accounted for ₹41,793 crore and Integrated GST made up ₹81,939 crore, including ₹36,705 crore on import of goods.

GST Compensation Cess collections, used to recompense States, grew 13.08% in April over March collections, to touch ₹10,649 crore. The cess collections included ₹857 crore collected on import of goods, marking a 8.9% decline from the ₹941 crore cess from import of goods in March.

“Even though the spike in April’s GST collections partly benefits from year-end adjustments, the all-time high magnitude of inflows is very enthusing, and augurs well for a robust year-on-year growth in the months ahead as well,” said ICRA chief economist Aditi Nayar, adding there is evidence of a healthy pace of economic activity in March despite the escalating geopolitical conflict in Europe.
Variations in growth trends

There were, however, wide variations in growth trends across States. While Tamil Nadu’s collections grew just 10% in April, Maharashtra saw collections rise by 25%, Odisha 28% Haryana 23% and Andhra Pradesh 22%. Karnataka and Rajasthan recorded a 19% uptick in GST collections, while the growth rate was 17% for Gujarat, and 16% for Telangana, Uttar Pradesh and Delhi.

Six States and Union Territories reported a contraction in revenues from a year ago, including Bihar (-2%), Manipur (-33%), Mizoram (-19%) and Tripura (-3%). GST inflows from Lakshadweep tanked 18% year-on-year, while those in Daman and Diu dropped a sharp 78%.

“The government has settled ₹33,423 crore to the CGST and ₹26,962 crore to the SGST from the IGST. The total revenue of the Centre and the States in April 2022 after regular settlement is ₹66,582 crore for the CGST and ₹68,755 crore for the SGST,” the Ministry said.

“This shows clear improvement in the compliance behaviour, which has been a result of various measures taken by the tax administration to nudge taxpayers to file returns timely, to making compliance easier and smoother and strict enforcement action taken against errant taxpayers identified based on data analytics and artificial intelligence,” the Ministry said in a statement.



Download our App to get knowledge updates: https://play.google.com




Join Our Telegram Channel for more updates:https://t.me/praveengst:










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