GST collections in October: Revenue plunges Rs 10,000 cr; here is what has taken a toll

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New Delhi | Published: November 28, 2017 6:12:36 AM

The goods and services tax (GST) revenue collected in October stood at Rs 83,346 crore as on Monday, nearly Rs 10,000 crore lower than the average collection in the three preceding months.

GST collections, GST collections in October, Revenue plunges, average collection, GST credit, lower tax incidence, interim GSTRThe goods and services tax (GST) revenue collected in October stood at Rs 83,346 crore as on Monday, nearly Rs 10,000 crore lower than the average collection in the three preceding months. (Image: Twitter)

The goods and services tax (GST) revenue collected in October stood at Rs 83,346 crore as on Monday, nearly Rs 10,000 crore lower than the average collection in the three preceding months. The new indirect tax regime was implemented in July. The government attributed the decline to greater utilisation of integrated GST credit instead of cash for paying taxes. The October revenue suffered also from overall lower tax incidence on most commodities under GST (tax cuts on 130 items were announced either during or before October). The lower realisation was also due to lower compliance in absence of matching of returns and the e-way bill, both of which have been deferred after taxpayers complained of excessive compliance burden. The last date for filing the interim GSTR 3 B and paying the taxes for October without fine was November 20. As reported by FE earlier, by the respective deadline, the returns filing had gathered pace over months. The number of taxpayers who file monthly interim returns (along with tax needs to be paid or nil tax liability claimed) seems to settle a little below 60 lakh. Officials said October revenue will eventually increase by some Rs 3,000-4,000 crore as a few more lakh among the eligible taxpayers could pay taxes in the coming days.

“The tax administration of GST is now based on self-declared tax return, in which the assessee decides on his own how much tax liability he has and claims input tax credit as per his own calculations,” the government said, explaining the reasons for lower collections. A compensation of Rs 10,806 crore has been released for the months of July and August and an extra amount of Rs 13,695 crore has been released for the September-October. Further, an amount of Rs 31,821 crore has been released to the states for August, September and October as part of settlement from the amount collected under the inter-state GST head. An additional amount of Rs 13,882 crore is being released by way of IGST settlement to all the states for the month of November, the government said.

A net amount is transferred from IGST account to the state GST account whenever IGST collected is used for payment of SGST. Similarly, an amount of Rs 16,233 crore has been transferred from IGST account to CGST account by way of settlement for the three months since August. An additional amount of Rs 10,145 crore is being transferred to CGST account from IGST account for November by way of settlement, the government said. Additionally, the total CGST income for the months of August, September, October and November has been Rs 58,556 crore. As for SGST, Rs 87,238 crore has been collected during the period. “The major reason for the gap in income of CGST and SGST has been that more CGST liability has been discharged using transition credit rather than by way of cash,” the government said in a statement.

For October, 50.1 lakh taxpayers filed summary return GSTR-3B as on Monday. So far, 95.9 lakh taxpayers have been registered under GST, of which 15.1 lakh are composition dealers which are required to file returns every quarter. The total number of GSTR 3B returns filed for the return period July, August, September and October 2017 till November 26 is 58.7 lakh, 58.9 lakh, 57.3 lakh and 50.1 lakh, respectively.

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