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GST Collections
Telangana State GST collections soar

Telangana State GST collections soar

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Telangana continues to register impressive growth in the collection of Goods and Services Tax (GST) in the current year, maintaining more than 20 per cent growth till the end of February. Interestingly, the State collected a whopping Rs 1,040 crore of State GST (SGST) in February when the national level GST collections were Rs 97,246 crore, down from Rs 1.02 lakh crore collected in January.

In GST era, February 2019 has been the best month for the Commercial Taxes Department of Telangana government. The officials collected Rs 1,040 crore of SGST in last month, beating previous best of Rs 1,021 crore collected in April last year. The officials could achieve the targets and collect nearly Rs 3,000 crore of GST including SGST, Central GST (CGST) and Integrated GST (IGST) in February.

“Despite a nation-wide drop in GST collections, we could achieve the growth due to consistent pursual of pending cases of GST arrears. We hope to beat the February collections during March as the financial year comes to an end,” said an official in the Commercial Taxes department, which issued notices to traders who failed to pay their arrears.

The State’s growth in tax collection has been one of the highest in the country. The State collected Rs 904 crore State Goods and Services Tax (SGST) in March 2018, a record of sorts after the implementation of GST from July 2017. The State registered nearly Rs 22,700 crore GST collection between April 2018 and February this year. Except for July when the collections were down by over Rs 250 crore, the State’s GST collection has been consistently above the previous year’s monthly collection.

Meanwhile, the nation-wide GST collections have reduced over the past few months and GST revenues of the Central government stood at Rs 97,246 crore in February against Rs 1.02 crore collected in January this year. In all, the Central GST collections were Rs 17,626 crore, while the State GST collections were Rs 24,192 crore and integrated GST collections were at Rs 46,953 crore in February. Another Rs 8,476 crore was collected as cess under various accounts. During the corresponding period last year, the GST collections were Rs 85,962 crore which is 13.12 percent less than this year. As on February 28, the GST collections were Rs 10.7 lakh crore across the nation. The number is likely to increase by at least Rs 1 lakh crore.

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Source: Telangana Today
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Tax rate cut for India Inc possible after GST collections stabilise: FM to industry

Tax rate cut for India Inc possible after GST collections stabilise: FM to industry

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The corporate sector will have to wait a little longer to enjoy a breather in corporate tax as the government is waiting for indirect tax collections via Goods and Services Tax (GST) to stabilize before lowering income tax rates for companies.

“The finance minister has promised that as the revenue collection, as in the GST goes up, he will rationalize the tax rate for the rest of the sector over the next few years,” Sandip Somany, president, Federation of Indian Chambers of Commerce and Industry (Ficci), an industry body, said after meeting Arun Jaitley.

The trade body had met the finance minister in the morning to “present the agenda for the next government”.

“We had fruitful discussions across a wide range of subjects including taxation, job creation and other things that we should be doing as a country to increase industrial output. We also discussed various social schemes to help less affluent people which can be done as GST collections increase,” he told reporters.

Modi government had announced in the union budget of 2015-16, that the government intended to reduce the corporate tax rate from the current 30 percent to 25 percent in the coming years, phasing out exemptions for the companies.

Acting on the same, it lowered the tax rate for micro, small and medium enterprises (MSMEs) to 25 percent, which had a turnover of less than Rs 50 crore, in 2016-17. The same was extended in 2018-19 to those MSMEs which had a turnover of Rs 250 crore.

After the move, only 7,000 companies are in the 30 percent tax slab category, out of about 7 lakh companies which file returns.

The government had initially set an average target of over Rs 1 trillion GST collection per month in order to earn higher than Rs 13 trillion indirect taxes annually. The target, however, has been lowered to Rs 11.47 lakh crore in the revised estimates of 2018-19, from Rs 13.71 lakh crore budgeted initially. For 2019-20, the GST collection target has been budgeted at Rs 13.71 lakh crore.

The government, however, has been able to touch the collection of Rs 1 trillion only during April and October (2018) and January (2019). While revenue in April was higher as businesses generally pay arrears for some of the previous months, mop-up in October was Rs 1 lakh crore due to the onset of the festive season.

The GST collection for the month of February was Rs 97,247 crore, lower than the amount collected in January. Between April and January, the government has collected Rs 9.71 lakh crore revenue from GST.

Achieving the revenue collection target is crucial as it has a direct bearing on the fiscal deficit, which is a gap between the government’s revenue and expenditure.


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Source:  Money Control.
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GST revenue: States’ deficit drops to 10% in April-November from 20% in previous eight months

GST revenue: States’ deficit drops to 10% in April-November from 20% in previous eight months

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Despite the series of rate cuts since its July 2017 launch, the shortfalls in goods and services tax (GST) collections seem to be bridging for many states, in what indicates an improvement in compliance. As a result, the overall GST revenue deficit for states has come down to 10 percent in April-November 2018 from 20 percent in the August 2017-March 2018 period, data gathered by FE showed. (The deficit is reckoned against the 14 percent y-o-y growth target set under the GST compensation law).

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GST collections likely to top Rs 1 lakh crore in November, December

GST collections likely to top Rs 1 lakh crore in November, December

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The finance ministry expects the GST collections to cross Rs 1 lakh crore in November and December on account of festive season demand and the anti-evasion measures initiated by the revenue department. and the anti-evasion measures initiated by the revenue department.

The Goods and Services Tax (GST) revenue rose to Rs 94,442 crore in September and officials feel it could surpass the landmark one lakh crore on increased demand during festival season.

“With the current trend for GST mop-up, it is expected that the monthly collections could again touch Rs 1 lakh crore around November and December,” an official said.

The collections during November and December 2018 would reflect the sales and purchases made during the months of October and November 2018.

“The GST collection should cross Rs 1 lakh crore because of festive season demand. This is the time when people make purchases and companies offer discounts and come up with promotional offers to boost sales. We expect an increase in sales which in turn will result in higher revenues for the government,” said Lakshmikumaran & Sridharan Partner L Badri Narayanan.

AMRG & Associates Partner Rajat Mohan said the duo of Indian festivities and wedding season would push the overall demand, temporarily lifting the GST collections for November and December.

“Controlling fiscal deficit with the help of an increase in revenue collection is an economically more feasible option than restricting government spending, even if this increase by means of implementing the stringent anti-evasion measure,” Mohan said.
The finance ministry official, however, has expressed the apprehension that revenues could witness a decline thereafter as sales and purchases usually taper off in the last quarter of fiscal.

The finance ministry has targeted monthly GST collections to be Rs 1 lakh crore for this fiscal, but the actual mop-up has fallen short of the target month after month. The sole exception was the month of April in which the numbers exceeded Rs 1 lakh crore.

The collections stood at Rs 94,016 crore in May, Rs 95,610 crore in June, Rs 96,483 crore in July, Rs 93,960 crore in August and Rs 94,442 crore in September.


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Source: Business Today
GST collection for the FY 2017-18 stood at Rs 7.41 lakh crore

GST collection for the FY 2017-18 stood at Rs 7.41 lakh crore

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Collections from the levy of the Goods and Services Tax (GST) stood at a provisional ₹7.41-lakh GST: GSTNcrore for the year ended March 31.

The GST regime was rolled out on July 1, 2017, and therefore the total tax mop-up pertains to the nine-month period from July 2017 to March 2018.

A statement from the Finance Ministry said the total GST revenue collected between August 2017 and March 2018 was ₹7.19-lakh crore. “For (these) eight months, the average monthly collection has been ₹89,885 crore,” the statement said.

Thise collection includes ₹1.19-lakh crore of Central GST, ₹1.72-lakh crore of State GST and ₹3.66-lakh crore of Integrated GST.

The Integrated GST collections include the ₹1.73-lakh crore tax on imports and ₹62,021 crore of cess.

Commenting on the collections, Abhishek A Rastogi, Partner, Khaitan & Co, said, “The collection is below target as rate cuts were announced in the recent past and various refunds in the case of export and other cases have also been cleared. It is hoped that the compliance level will improve further and all the assessees registered will start paying taxes, thereby leading to improved GST collections in the new financial year.”

The SGST collection during the year, including the settlement of IGST, has been ₹2.91-lakh crore and the total compensation released to the States ₹41,147 crore.

The compensation is to ensure that the revenue of the States is protected at the level of 14 per cent over the base-year tax collection in 2015-2016. “The revenue gap of each State is coming down over (the) last eight months. The average revenue gap of all States for last year is around 17 per cent,” the statement added.

The Finance Ministry also noted that there has been “a progressive improvement” in the compliance level observed during the course of the year.

In July 2017, the portion of GST returns filed on time stood at 57.69 per cent. This improved to 66.81 per cent by December 2017 but dipped to 62.63 per cent in March 2018.

The cumulative compliance levels (percentage of returns filed till date) for initial months has crossed 90 per cent and for July 2018, has reached 96 per cent.

“There are State-wise variations in the compliance level observed till due date. However, including delayed filings, the State-wise compliance levels converge over a period of time,” the Finance Ministry statement added.

Parag Mehta, Partner at NA Shah Associates LLP, said, “Currently, there is stability in law for the past three months and the compliance level has also increased.”

With the GSTN system working smoothly and no hindrances for generating e-way bills, the compliance level should increase further, he added. “With many States also introducing the intra-State generation of e-way bills for movement of goods, evasion is bound to reduce and increase the revenue.”

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Source: The Hindu business line
GST collection for January comes in at Rs 86,318 crore

GST collection for January comes in at Rs 86,318 crore

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GST collection Jan 2018

The Centre today said that the total revenue collection under GST for the month of January, till February 25, stood at Rs 86,318 crore. Rs 86,703 crore was collected in December 2017.

“1.03 crore taxpayers have been registered under GST so far till 25th Feb, 2018. So far,17.65 lakh dealers got registered as Composition Dealers,” according to Ministry of Finace.

According to the Finance Ministry, out of 17.65 lakh dealers, 1.23 lakh Composition Dealers have opted-out of Composition Scheme and have thus become regular taxpayers. “Till 25th Feb,2018 there are 16.42 lakh Composition Dealers which are reqd to file returns every Quarter & 87.03 lakh taxpayers to file monthly returns”.

So far 57.78 lakh GSTR 3B returns have been filed for the month of January, 2018 till 25th February. This is 69 percent of total taxpayers which are required to file monthly returns, the ministry added.

“It was expected that Febuary 18 numbers (for month of January) would be better than this as GST was settling in and impact of opening credit was assumed to have been largely factored in previous months. With roll out of E-way bills getting deferred to April 18 and a contuining shortfall in number of monthly returns getting submitted, we may see administrative tightening and more rigourous anti evasion measures in next few months,” said Pratik Jain, Partner & Leader, Indirect Tax – PwC India .

Of the Rs. 86,318 crores collected under GST for January, Rs.14,233 crores have been collected as CGST, Rs.19,961 crores has been collected as SGST, Rs.43,794 crores collected as IGST & Rs. 8,331 crores collected as Compensation Cess.

Also read: GST Council to further trim list of items in 28% tax slab: FM Arun Jaitley

“The GST collections for January are almost the same as that for December i.e. around 86,000 crores. The average GST revenue collections seem to have settled around Rs 86,000 crore. About 30% taxpayers registered with GST are still not filing their returns and the Centre must endeavour to make them file the returns, which may further enhance the overall GST revenue collections,” said Abhishek Jain, Tax Partner, EY India.

Collections under the GST, implemented from July 1 last year, were over Rs 95,000 crore for the first month, while in August the figure just over Rs 91,000 crore. In September, it was over Rs 92,150 crore, October (Rs 83,000 crore), November (Rs 80,808 crore) and December (Rs 86,703 crore).

Source : Economic Times
Govt records highest GST filing in October, Punjab tops the list in compliance

Govt records highest GST filing in October, Punjab tops the list in compliance

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All eyes are on GST as Centre plans better social pension

The Goods and Services Tax (GST) Council’s efforts to sort out the sundry issues plaguing taxpayers during the initial rollout and the steady reduction in tax rates seems to be paying off in terms of compliance and tax collections. As many as 43.67 lakh businesses have filed the initial GSTR-3B returns for October, the highest monthly return filing within due date since the new tax was introduced on July 1, according to a GST Network statement. That’s around 56% of the registered taxpayers. Punjab saw over 73% taxpayers filing GSTR-3B returns, the highest among all the states.

In fact, there has been a steady increase in the number of taxpayers filing the initial sales return. Over 39 lakh returns were filed within due date for September compared to 28.46 lakh for August. This can be attributed to two major factors. “One is greater awareness and the fact that GSTR-3B is a simpler form. The second is that the GSTN portal has been performing much better, especially [for] GSTR-3B and GSTR-1,” said Pratik Jain, leader, indirect tax, PwC India in a quote to The Hindu. Incidentally, GST registrations overall has crossed 11 crore from around 60 lakh in late August.

Of course, given the typical Indian mindset of dithering till the last minute, November 20-the last date for filing the summary returns for the previous month without interest-saw over 14.7 lakh taxpayers log into the GST Network portal; a new record for maximum returns filed in a single day.

“But the gap between eligible taxpayers and those filing returns by the deadline has continued to hover around 30 lakh, which would be a concern for the government,” said Abhishek Jain, tax partner, EY to The Financial Express. Nonetheless, the numbers should fan the government’s confidence that GST will widen the tax base and yield higher revenue than ever before.

 


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Source :  Business Today in
GST revenue collections slow down in August to Rs 90,669 crore

GST revenue collections slow down in August to Rs 90,669 crore

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GST Collection

The government collected Rs 90,669 crore goods and services tax (GST) for August, a little lower than the Rs 94,063 crore collected in July. This is also lower than the Rs 91,000 crore which should have come to the Centre and states in a month, given the Budget Estimates and assumed growth rates in receipts for 2017-18.

Also read: Sushil Modi expects large corporates to file GST returns earlier

Only 55 per cent of assessees paid taxes for August, compared to 64 per cent for July.
But, the figures should be compared cautiously. About Rs 92,283 crore GST was collected for July till August 29, while Rs 90,669 crore was garnered till September 25. Hence, growth in collections was flat in August, compared to July. As much as Rs 94,063 crore was paid till August 31.

About Rs 14,402 crore came from the Central GST (CGST) in August, against Rs 14,894 crore in July (paid till August 29); Rs 21,067 from State GST (SGST), against Rs 22,722 crore in the previous month; and Rs 47,377 crore from Integrated GST (IGST), compared to Rs 47,469 crore in July. Of the IGST, Rs 23,180 crore came from tax on imports, against Rs 20,964 crore in July, according to figures released by the finance ministry. The cess over the peak rate of 28 per cent garnered Rs 7,823 crore in August, from Rs 7,198 crore in July. Of the August amount, Rs 547 crore came from cess on imports. The cess will be used to pay states that suffer losses because of the GST.

Taking a broad look at the numbers, it is clear that two figures — the IGST on imports and cess collections were higher in August. This means imports in the month were higher than in July, and items that draw cess, such as aerated drinks, cigarettes, cars, and coal, were sold more, at least in value terms.


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Merchandise imports of $35.46 billion were made in August, against $33.99 in July, according to trade figures released by the commerce department earlier.

These are gross figures, as such it is very hard to assess how much would be net collections for the exchequer as claims for input tax credit are not given.

GST collection Aug

As much as Rs 65,000 crore of credit for pre-GST stocks were claimed in July, but the government said only Rs 12,000 crore of claims were valid.

“The collection has dipped marginally as assesses start to utilise their transitional credit. As industry settles down to the GST law and compliance, a more realistic collection figure will be seen in the coming months,” said Bipin Sapra of EY. Ideally, the tax figures in August should be more than July as there were more returns filed last month. But those collections may come later. If those who paid taxes till August 29 and till September 25 are compared, the figures are more for the former month. The total number of taxpayers, who were required to file monthly returns for August was 6.82 million, of which 3.76 million filed returns (as of September 25). Over three million taxpayers are yet to file returns.  There were 5.95 million registrations under the the GST in July, of which 3.83 million filed returns as of August 29.  This also raises the issue of compliance.

“The alarming fact which emerges is with respect to the level of compliance for the month of August. It appears that 45 per cent of the assesses have still not filed returns (against 35 per cent for July). The government should go to the root cause and analyse whether these assesses are facing some genuine problems or they have been migrated automatically and are not required to comply,” said Abhishek Rastogi of Khaitan & Co.

Extrapolating the targets in the annual Budget, the central government’s August tax revenue should be Rs 48,000 crore. Against this, Rs 49,680.5 crore (Rs 14,402 crore from the CGST, Rs 23,180 crore from the IGST on imports and half of the remaining IGST at Rs  12,098.5 crore) came to the central kitty before devolution to the states. However, this is a broader number as division of the IGST is a complicated exercise. Assuming 14 per cent growth each in 2016-17 and 2017-18 to the 2015-16 revenues of states, their tax kitty should have been Rs 43,000 crore for the month. The growth rate is taken according to a formula of compensating loss-making states. Against this, states got Rs 40,919 crore, including cess, in August.

The total combined targeted kitty was Rs 91,000 crore.


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