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economy | IST

GST collections in October 2019 fall 5.29%, at Rs 95,380 crore

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The Goods and Services Tax collections for the month of September, for which the collections were recorded in October stand at over Rs 95,380 crore.

Not coming in as a surprise for the government, the Goods and Services Tax (GST) collections for the month of September, for which the collections were recorded in October stand at over Rs 95,380 crore.
Union finance ministry in a statement added that “the revenue collections during October 2019 has shown a decline by 5.29 percent” on a year on year comparison and the GST revenue collections during April-October, 2019 vis-à-vis 2018, shows that the domestic component has grown by 6.74 percent but the GST on imports, during April-October, 2019 vis-à-vis 2018, has shown negative growth.
Looking at the numbers in detail, CGST is at Rs 17,582 crore, SGST is Rs 23,674 crore, IGST is Rs  46,517 crore (including Rs 21,446 crore collected on imports) and cess is Rs 7,607 crore (including Rs 774 crore collected on imports). The total number of GSTR 3B Returns filed for the month of September up to October 31, 2019, is Rs 73.83 lakh.
Since the overall GST collections are yet again way below the monthly asking rate of Rs 1.14 lakh crore, experts see it as a worrisome picture for the government.
“This is the second consecutive month where the collection is lesser than the corresponding period in last year. While for April to September 2019, there is still over 3 percent growth when compared to the corresponding period last year, it is declining steadily.  However, for November, the collection should be better given the festivities in October. While with the simplification of compliances and tightening of administrative measures, the collection could slightly improve in next few months, there is definitely a need of stimulus to spur demand,” said Pratik Jain, national leader (indirect taxes) at PWC India.
Similarly, M S Mani, Partner, Deloitte India feels that “ lower than target collections would make the revenue augmentation panel look at plugging evasion and introduce reverse charges in more cases.
But, the expectations are that the collections might soon pick up, Abhishek Jain, Tax Partner, EY said, "With possibly a general demand slowdown in September, the GST collections were comparatively lower than expectations. With festivities in October, these numbers should witness a rise and meet expectations in the coming month."
Union revenue secretary Ajay Bhushan Pandey also recently in an interview to CNBC-TV18 said that GST collections are soon likely to pick up. Let's see what are the steps that the GST Council would like to adopt to arrest the declining trend.