The Goods and Services Tax (GST) collection once again failed to meet its monthly average target of Rs 1 lakh crore, signalling a shortfall of nearly Rs 1 lakh crore in the financial year 2017-18. The collection in December stopped at Rs 94,726 crore, which may prompt the government to go tough on tax evaders.
“The revenues being lower than the targets could lead to more compliance pressures on businesses and more focus on anti-evasion measures,” MS Mani, Partner, Deloitte India told FE Online. In Budget 2018, the government had set the GST revenue target for the financial year 2018-19 at Rs 12 lakh crore, putting it at a monthly average of Rs 1.07 lakh crore.
GST collection stood at Rs 1.03 lakh crore in April, Rs 94,016 crore in May, Rs 95,610 crore in June, Rs 96,483 crore in July, Rs 93,960 crore in August, Rs 94,442 crore in September, Rs 1,00,710 crore in October and Rs 97,637 crore in November.
“The collections while admittedly are below the targets, seem to indicate that the revenues are stabilising around Rs 95,000 crore per month, despite the rate reductions in the current fiscal,” he added.
Pratik Jain of PwC also said that GST collections are likely to be on similar lines in coming months, which may lead to more enforcement and investigation cases, PTI reported.
The government has detected GST evasion worth Rs 12,000 crore in 8 months until November, according to tax officials. Central Board of Indirect Taxes and Customs (CBIC) member John Joseph recently said that there has been rampant tax evasion despite E-way bill mechanism and that there is a need to increase compliance.