The finance ministry on Monday attributed the dip in revenue collection to various factors including decline in "overall incidence of taxes on most commodities".
Revenue collected from Goods and Services Tax (GST) for the month of October was Rs 83,346 cr - the lowest since the implementation of the indirect tax system from July 1.
The Ministry of Finance attributed the dip in revenue collection on various factors including a decline in 'overall incidence of taxes on most commodities’.
As per data available, the government had garnered revenue worth Rs 92,150 cr for the month of September (as on October 23), Rs 90,669 cr for August (as on September 27) and Rs 94,063 cr in July (as on September 25).
The revenue number for October indicates collection as of November 27. Till now, 95.9 lakh taxpayers have been registered under GST, out of which 50.1 lakh returns have been filed for October (till November 26).
According to the government, the tax compliance may not be up to the mark as key features of GST, such as invoice matching, e-way bills, as well as reverse charge mechanism have been postponed.
“Because of the first time required of paying IGST on transfer of goods...there was an additional cash flow of IGST in first three months As and when the final transaction of these goods take place, the credit for IGST is being utilised for payment of that and CGST and therefore the inflow of new taxes in low,” the statement said.
States have collected cumulative revenue of Rs 87,238 cr (from July to October) while the Centre raised a total of Rs 58,556 cr since July.
The finance ministry, however, did not provide State and Central GST (SGST and CGST) revenue numbers for the month of October. Similarly, integrated GST (IGST) or inter-state tax collected for October was not officially available
The Centre released Rs 24,501 cr as compensation to states for July-October, out of which Rs 13,695 cr was distributed for September and October.
“The states' revenues have thus been fully protected taking base year revenue as 2015-16 and providing for a projected revenue growth rate of 14 percent,” finance ministry said in a statement.
As per GST-related laws, the Centre is supposed to compensate the states for the losses incurred as the new tax system subsumed a dozen of state and central levies into a single nation-wide tax.Earlier this month, the GST Council cut rates on 178 items to 18 percent from 28 percent and simplified return filing procedures for small firms in one of biggest changes in rules and rates since the new system kicked in from July 1. The Council also made several changes to make the 'Composition Scheme' more attractive.Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.