Mumbai: The GST collection by the central and state governments fell 5.3% year-on-year to 95,380 crores in October, but the September collection improved 3.8%, the Finance Ministry said.
According to the Finance Ministry statement, the GST collection in September was ₹ 91,916 crore, while in October 2018, the government cut consumption taxes by 1 trillion. The year-on-year decline in GST receipts reflects the drop in demand in the Indian economy.
As per government data released which showed that the output of eight core infrastructure industries, which accounted for two-fifths of India’s factory output, declined by 5.2% in September, the slowest pace in at least 14 years.
According to the Controller and Auditor General (CGA) data, in the first half of the financial year, the central government collected revenue 6 trillion in tax revenue, which is only 36.8% of the full-year target.
In addition, the fiscal stimulus provided by the centre through companies not taking advantage of any tax breaks and decreasing corporate tax rates for new manufacturers is estimated to cost the exchequer 1.45 trillion.
Experts said festive demand could help boost revenue receipts in the coming weeks.
“GST collection was lower than expectations, with a general demand slowdown likely in September. With the celebration in October, these numbers should see an increase and meet expectations in the coming month, ”said Abhishek Jain, tax partner, EY.
Indirect tax, PwC India partner, Prateek Jain, said revenue collection in November should be better given the festivals in November. “Simplification of compliance requirements and tightening of administrative measures may improve collections slightly over the next few months, but incentives are needed to increase demand,” he said. ”
The Finance Ministry statement said that 7.38 million businesses filed summary tax returns for September in October, slightly lower than the 7.59 million filed for the previous month.
After disposing of tax receipts for interstate supplies, the total revenue earned by the central government and the states stood at ₹ 38,224 crores and rece 37,645 crores in October respectively.
The finance ministry statement said that 7.38 million businesses had filed the summary tax returns for September in October, which is slightly below 7.59 million filed for the previous month.
After settling the tax receipts for interstate supplies, the total revenue earned by the central government and states stood at ₹38,224 crore and ₹37,645 crores, respectively, in October.
(With Agency Inputs)
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