The gross goods and services tax (GST) accumulation in August 2019 remained at ₹98,202 crore, increased by 4.51% by comparing to₹93,960 crores in the same month a year ago.
The GST accumulation, though higher on a yearly premise, is still lower than the government’s desires for ₹1 trillion.
“The gross GST income in the month of August 2019 is₹98,202 crore of which CGST is ₹17,773 crore, SGST is ₹24,239 crore, IGST is ₹48,958 crore (including ₹24,818 crores gathered on imports) and cess is ₹7,273 crore (counting ₹841 crores gathered on imports),” a finance ministry explanation said.
The total number of outline returns in GSTR 3B forms filed in the month of July up to 31 August was 75.8 lakhs.
Tax specialists said that indirect tax gathering in the month of August is usually subdued because of regularity factor and subsequently may not be viewed as an impression of consumption slowdown. They see gathering figure grabbing from the month of October with the beginning of the festive season.
“One-month information can’t show business reality,” said Amit Bhagat, Partner, indirect tax practice, Dhruva Advisors.
Amit Kumar Sarkar, Managing Partner, Versari Advisors India LLP said that people are having worries about the government meeting the budget target for GST gathering. In spite of the fact that the revenue mop-up stays challenging for the government, Sarkar sees an upward pattern in gathering in months to come.
“With the beginning of the festive season in the month of October consumption peaks up and thus accumulation would be higher. It must be viewed as how the October-December period works out,” he said.
A lower GST mop-up is set to strain government finances and make it hard to meet the fiscal targets. Moreover, the burden would increment on the Center for repaying states for revenue shortage. The pressure on the revenue dept could likewise go up to meet the objectives which thus may bring about coercive activities against trade and businesses.
The official statement said that a total of ₹27,955 crores was released to the states as GST pay for the month of June-July, 2019.
Finance Minister Nirmala Sitharaman had a month ago essentially brought down her projections for GST accumulations in the Budget for 2019-20 against the interim Budget exhibited in February. Accordingly, the Center hopes to gather ₹6.63 trillion, down 13% against the previous estimate of ₹7.6 trillion.
Rolled out in July 2017 and charged as the greatest financial reform, GST subsumed 17 different indirect taxes and 13 cesses making India “One Nation One Tax One Market.”
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