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Thursday, January 25, 2018

Goods And Service TAx(GST) - GST mop up in Dec. rises to ₹86,703 crore,reversing two consecutive months of fall

Reversing two consecutive months of fall, the Goods and Services Tax (GST) collections for December rose to ₹86,703 crore.

Meanwhile, the GST taxpayer base touched the one-crore mark.

“Total revenue collections under GST for December 2017 (received in December 2017/January up to 24th January, 2018) has been ₹86,703 crore ...” the Finance Ministry tweeted. In November 2017, the GST collections had fallen to ₹80,808 crore, from more than ₹83,000 crore in October, 2017. GST collections in September, 2017 were more than ₹92,150 crore.

“The increase... is a welcome sign, given that it was the first full month after the rate cuts on several products,” said M. S. Mani, senior director, Deloitte India, said in a statement.

“The December collections could become “the much-needed tipping point in the GST history” and appears they (GST collections) have started “entering the stabilisation phase,” he said, adding, “With several other measures such as the e-way bill lined up, the collections would only increase in future, removing fears of an increase in the fiscal deficit.”

Mr. Mani said a combination of reasonable rates and easier compliance processes during December would have contributed to the improvement in collections.

‘Average collection’

“Average monthly collection in past five months is about ₹74,000 crore,” said Dinesh Agrawal, ED, Khaitan & Co. “Comparing with the average collection as well as past month collection, December collection is showing tax buoyancy of 7.5%. This is a good sign of the maturing GST as well as a growing economy,” he said. However, in February, collections may dip on cut in tax rate from 28% to 18% on 178 items.

However, he added, next month may show a slight dip in collection due to slashing of tax rate from 28% to 18% on 178 items.

“Rise in GST revenue collections will be a big relief for the government just before the presentation of the Ünion Budget,” said Vishal Raheja, deputy general manager, Taxmann.

“The rollout of e-way bill on transport of goods having value exceeding ₹50,000 from one State to another on pan-India basis from February 1, 2018 will further curb tax evasion, and the revenue will rise in the coming months,” he said.

The Finance Ministry said one crore taxpayers have been registered under GST so far till January 24, 2018. Of these, 17.11 lakh were ‘composition dealers’ who were required to file returns every quarter. For the composition dealers, the last date of filing GSTR 4 return for July-September 2017 quarter was December 24, 2017, it said. “... 8.1 lakh returns were filed by composition dealers paying a total of ₹335.86 crores as GST,” the Ministry said.

It further said “56.3 lakh GSTR 3B returns have been filed for the month of December, 2017 till January 24, 2018.” For the quarter October-December 2017, the last date for filing GSTR 4 Return was January 18, 2018. “9.25 lakh returns were filed by composition dealers for this quarter paying ... ₹421.35 crore as GST,” the Ministry said. Mr Raheja said, “more details and information would be required in the returns of composition dealers from the fourth quarter. (This) will lead to more compliance and check tax evasion.”

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