The Finance Ministry has explained the reason behind the revenue shortfall under the Central Goods and Service Tax, saying that the liabilities were "discharged using transition credit rather than by way of cash."
The Finance Ministry has explained the reason behind the revenue shortfall under the Central Goods and Service Tax, saying that the liabilities were “discharged using transition credit rather than by way of cash.” According to government data, states have collected Rs 87,238 crore by way of SGST between August and November 26, while the total CGST collected for the same period has been Rs 58,556 crore.
“Thus, taxpayers are using the balance credit available with them in the previous tax regime, which is the reason why there is an additional revenue gap in the Centre’s revenue,” the Finance Ministry tweeted. The government said that the total collection of the GST for the month of November so far has been Rs 83,346 crore and over 95.9 lakh taxpayers have been registered under the new regime. The Finance Ministry, in a series of tweets, said, “50.1 lakh returns have been filed for the month of October until 26th November.”
The government also said that states are being compensated for their revenue shortfall. “By way of settlement an amount of Rs. 31,821 crores have been released to the States for the months of August, September & October 2017. Rs. 13,882 crores are being released by way of settlement to all the States for the month of November 2017,” the government said.
As per the Goods and Services (Compensation to States) Act 2017, states’ revenues are fully protected against any shortfall in GST collections. A compensation amount of Rs. 10,806 crores have been released to all the States for July and August 2017.
A compensation of Rs 13,695 crores is also being released for the month of October and September, the Finance Ministry said, adding that states’ revenues have been fully protected taking 2015-16 as the base year. In addition to this, an amount of Rs 16,233 crore has been transferred from IGST account to CGST account by way of settlement of funds on account of Inter-State supply of goods and services in the month of August, September and October.
The total number of GSTR 3B returns filed for the return period July, August, September and October till November 26 has been Rs 58.7 lakh, Rs 58.9 lakh, Rs 57.3 lakh and Rs 50.1 lakh respectively.