Shreya Nandi Moneycontrol News
Revenue collections from Goods and Services Tax (GST) marginally increased to Rs 86,703 crore during December, recovering from last month’s lows.
The revenue numbers for December, as released by the finance ministry, indicate tax collection till January 24. Till now, one crore taxpayers have been registered under the new indirect tax system, out of which 56.30 lakh GSTR 3B (summary form) returns have been filed for December. Out of the total number of taxpayers, 17.11 lakh are composition dealers who file returns every quarter.
A total of 8.10 lakh returns were filed by dealers who had opted for composition scheme — for small manufacturers, traders and restaurants paying tax at concessional rate — paid Rs 335.86 crores for the quarter ended September.
However, the numbers indicate that less than 50 percent dealers under composition scheme have filed returns, with meagre collection of just Rs 335.86 crore in three months.
According to experts, GST collections have started to stabilise and are now expected to improve in the next few months.
“The increase in GST collections for December compared to November is a welcome sign, given that it was the first full month after the rate cuts on several products,” M S Mani, Senior Director, Deloitte India said.
“A combination of reasonable rates and easier compliance processes during December would also have contributed to the improvement in collections. The December collections could become the much needed tipping point in the GST history. 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 ,” Mani said.
In November, revenue collection from GST slipped to Rs 80,808 crore, lowest since the implementation of the indirect tax system from July 1.
The dip in revenue collection was mainly due to a decline in overall incidence of taxes on most commodities, especially after the apex decision making body of the new tax system — GST Council — cut rates of more than 200 items in its 23rd meeting in Guwahati in November.
As per data available, government had garnered revenue worth Rs 83,364 crore in October, Rs 92,150 crore for the month of September, Rs 90,669 crore for August and Rs 94,063 crore in July.
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