GST COLLECTIONS MAY NOT INDICATE ECONOMIC REVIVAL ?
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 7-5-2018<\/p>\n
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).
\nFor 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 ba<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n month of April, 2018 is ₹ 32,493 crore for CGST and ₹ 40,257 crore for the SGST.The buoyancy in the tax revenue of GST reflects the upswing in the economy and better compliance. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n o be a month of hectic economic activities, it being the last month of the financial 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST COLLECTIONS MAY NOT INDICATE ECONOMIC REVIVAL ?By: – Dr. Sanjiv Agarwal Goods and Services Tax – GSTDated:- 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 … Continue reading “GST COLLECTIONS MAY NOT INDICATE ECONOMIC REVIVAL ?”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-11699","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11699"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11699\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nHowever, 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.
\nThe 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-stat<\/p>\n
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\nOne 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-<\/p>\n
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