Even though GST collection in May fell from Rs 1.03 lakh crore in April to Rs 94,016 crore, there’s nothing to worry as April is traditionally the month of lowest collection.
Even though GST collection in May fell from Rs 1.03 lakh crore in April to Rs 94,016 crore, there’s nothing to worry as April is traditionally the month of lowest collection, so the comparison is unjustified. In a series of tweets, Finance Secretary Hasmukh Adhia said that average taxes on goods and services during April has always been higher when compared with the previous month. Hasmukh Adhia tweeted: “GST April revenue: Some people are comparing April collection figure with March which is not correct. April is traditionally the month of lowest monthly collection.”
“As per the experience of last 5 years, the average collection of taxes on goods and services during April is approx 7.1 per cent of the annual taxes as against 11 per cent for March,” he said in a series of tweets.
Revenues from Goods and Services Tax (GST) had crossed a record Rs 1.03 lakh crore for returns filed in April. GST returns filed in May fetched Rs 94,016 crore revenue to the government. The returns filed in April were on account of sales in March and the returns filed in May showed business activity in April.
“Going by this past experience of indirect taxes and the robust trend in GDP Growth, the April collection of GST indicates a very promising future for indirect tax revenue,” Hasmukh Adhia said.
However, the May GST collection was higher than the monthly average of Rs 89,885 crore of the fiscal year 2017-18.
“For the month of April, the collection of Rs 94,016 crore is a good collection. But now the collection should really go up to Rs 1 lakh crore for the government to be in a good spot,” Pratik Jain of PwC told CNBC-TV18. The government’s target for FY18-19 puts an average collection of Rs 1.10 lakh crore. Pratik Jain said that the GST collection in May was a 5% jump from monthly average, however, it seemed that the roll-out of E-way bill did not bring quite the result the government was expecting.