GST collection tops Rs 1.4 lakh crore in seventh month

Data released by the finance ministry on Saturday showed that gross goods and services tax (GST) collection for September (for sale in August) rose to Rs 1,47,686 crore, up 26.2 per cent from the same period a year ago. ‘s growth.

Even as the share of collections from imports fell from 30 per cent to 28 per cent, high inflation rates, rise in retail prices of many consumption items as well as expansion in use of e-invoicing and ensuring higher compliance are supported by tax authorities. Action increased. Increase in GST collection August was the first full month, reflecting the full impact of the rate hike decisions taken in the 47th GST Council meeting, which came into effect on 18 July.

GST exemption was withdrawn from ‘pre-packaged and labeled’ retail packs including food items such as curd, lassi, puffed rice, wheat flour, buttermilk – but still exempted on unlabeled or unlabeled items sold Is. Pre-packaged and pre-labeled food items such as cereals, curd, lassi, paneer, jaggery, wheat flour, puffed rice, buttermilk and meat/fish (except fresh and frozen) now taxed at 5 per cent equivalent to branded is applied. Belongings.

GST revenue from import of goods was higher by 39 per cent, while revenue from domestic transactions (including import of services) was higher by 22 per cent. Monthly GST revenue in the last seven months has been over Rs 1.4 lakh crore, with the monthly average for this fiscal being Rs 1.48 lakh crore. The Finance Ministry said that the year-on-year growth in GST revenue during April-September 2022 is 27 per cent, which continues to “exhibit very high buoyancy”.

See also  Fonterra to maintain Australian business amid 'strong' annual results

“This month saw the second highest single day collection of Rs 49,453 crore on 20th September, with the second highest number of 8.77 lakh challans recorded, followed by 9.58 lakh challans on 20 July 2022 with only Rs 57,846 crore collected , which pertained to the end of the year. Return. This clearly shows that the GST portal maintained by GSTN is completely stable and glitch free,” it added.

E-way bills used for inter-state transactions showed a slight uptick. The ministry statement said that during August 2022, 7.7 crore e-way bills were generated, which was marginally higher than 7.5 crore in July. “Another milestone was crossed in September when more than 1.1 crore e-way bills and e-challans, combined (72.94 lakh e-challans and 37.74 lakh e-way bills), were uploaded on the portal run by NIC without any The mess was born. 30 September 2022,” it added.

However, some experts said that the GST collection has not grown in line with the increase in e-way bills, which reflects activity only for the goods segment and not the services sector. Also, the impact of inflation in GST collection is significant.

In a report released on September 29, India Ratings and Research said that higher GST collections for almost two years now are due to a combination of three factors – (i) better compliance/enforcement, (ii) higher nominal GDP (due to inflation). ), and (iii) higher imports (due to higher prices of commodities). “Higher GST collection should not be construed as an indication of increase in consumption demand. In real terms, private final consumption expenditure (proxy for consumption demand) in Q1 FY23 grew by 9.9% over Q1 FY20, but grew by 36% in nominal terms during the same period. Real and nominal GDP grew by 3.8% and 31.4% respectively during the same period. This clearly states that the growth in GST collection is more due to higher inflation than higher consumption,” it said.

See also  Milwaukee's Mini Bowl of Coz up for sale after 44 years in business

Going ahead, experts said that with the onset of the festive season, the GST revenue will improve.

“Collections are expected to strengthen even further in the next three months because of higher consumption expected during the festive season and extension of mandatory e-invoicing protocol for taxpayers with a turnover of more than Rs 10 crore from October 1. State-wise data on collections shows decent growth in collections across key states, with several large states exhibiting more than 20% growth in collections over the previous year,” said MS Mani, partner, Deloitte India.

At least 18 states/UTs registered an increase of more than 20 per cent in GST collections.

Of the gross GST revenue of Rs 1,47,686 crore, CGST – tax levied by the Center on intra-state supply of goods and services – is Rs 25,271 crore and SGST – tax levied on inter-state supply of goods and services. States – Rs 31,813 crore, the Finance Ministry said.

IGST – tax levied on all inter-state supplies of goods and services – is Rs 80,464 crore (including Rs 41,215 crore collected on import of goods) and cess is Rs 10,137 crore (including Rs 856 crore collected on import of goods).

The government has fixed Rs 31,880 crore in CGST and Rs 27,403 crore in SGST from IGST. The total revenue of the Center and states in September after regular settlement is Rs 57,151 crore for CGST and Rs 59,216 crore for SGST, the ministry said.