Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 7-5-2018 – In first nine months of Financial Year 2017-18 when GST was in force w.e.f. 1st July, 2017, GST collections have averaged @ ₹ 89800 crore per month. Effectively it is for eight months as GST is collected in the following month. The GST collection in 2017-18 (9 months) has averaged @ ₹ 89800 crore per month which is on a lower side (provisional but including cess totaling ₹ 7.41 lakh crore). For the first time, GST collection has crossed ₹ 1 lakh crore mark in April 2018. However, this collection pertains to economic activities generated and performed in March, 2018 or earlier based on tax invoices issued during the relevant period. GST coll
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e for the SGST.The buoyancy in the tax revenue of GST reflects the upswing in the economy and better compliance. However, it is usually noticed that in the last month of a financial year, people also try to pay arrears of some of the previous months also and, therefore, this month's revenue cannot be taken either as trend for the future or a signal of economic recovery. It is just a reflection of hectic economic activities in the last month of the financial year. The data indicates that there are more economic activities in inter-state than intra-state as IGST collected is 48% of total tax where as aggregate of CGST and SGST is 43% only. In case of inter-state transactions, only IGST is charged @ GST rate which is sum of rate for CGST a
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cial year and increased tendency of sales and profit booking. In other words, March is not a median month to be compared to other months. Yes, tax compliances have certainly increased under GST regime which may be one of the factors for enhanced tax collections. One needs to wait, watch and see if this could be sustained over a period. It also need to grow atleast at a pace at which economy is growing. GST Council has set a target of ₹ 12 trillion for GST collection for 2018-19, buoyed by higher tax compliance in first year of GST regime. However, Government should look at the revenue collection over a period, say, atleast on a quarterly basis. From 2018-19 fiscal, the government is shifting to a cash basis of accounting where revenue
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