Nifty99000 100%

Sensex99000 100%

Article rating: 4.4
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: No rating
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: No rating
Tags:
Article rating: 5.0
Tags:
Article rating: No rating
Tags:
Article rating: 4.2
Tags:
Article rating: 5.0
Tags:
RSS

News

GST collections fall to Rs 93,960 cr in Aug

Author: PTI/Monday, September 3, 2018/Categories: TRACKING THE GST

GST collections fall to Rs 93,960 cr in Aug

New Delhi - GST collections declined to Rs 93,960 crore in August — the lowest monthly mop up so far this fiscal — as consumers deferred purchase of goods to avail the benefits of cut in tax rate, the Finance Ministry said.

Goods and Services Tax (GST) revenue for August was the lowest in the five months so far this fiscal. In July the collection was Rs 96,483 crore, in June it was Rs 95,610 crore, in May Rs 94,016 crore and in April Rs 1.03 lakh crore.

However, compliance improved as 67 lakh GSTR-3B or summary sales returns were filed during August, up from 66 lakh filed in July.

The August revenue collections reflect the purchase and sales activities conducted in the month of July.

Explaining reasons for the dip, the ministry said one of the main factors is probable postponement of sale of items for which tax rate was reduced by the GST Council in its meeting on July 21.

The rate cut on 88 items, including sanitary napkins, fridge, small screen TV, washing machine, footwear, among others, was effective July 27. Only 35 items were left in the highest tax bracket of 28% after the latest round of rate cuts.

“Since it would have taken some time for the market to pass on the benefit of reduced taxes, consumers would have postponed their decision to buy expecting the benefit. The actual impact of reduction of rate of taxes would be observed only from next month onwards as the rate reduction would have got affected only in last few days of the month,” the ministry said.

The GST Council hoped that tax reduction would reduce the cost to the consumers, thereby increase their purchasing capacity and add to the increased consumption in the economy.

Of the Rs 93,960 crore GST collection in August, central GST mop up was Rs 15,303 crore, state GST was Rs 21,154 crore, integrated GST was Rs 49,876 crore (including Rs. 26,512 crore collected on imports) and cess mop up was Rs 7,628 crore.

The total revenue earned by the central government and the state governments after settlement including provisional settlement of Rs 12,000 crore in August, 2018, is Rs 36,963 crore for CGST and Rs 41,136 crore for the SGST.

For the bi-monthly period June-July 2018, compensation of Rs 14,930 crore has been released to the states, the ministry said.

The ministry further said that past trend of indirect tax collection shows that while July collections are 8.2% of the total annual collections, August collections are at a lower level of 7.7% of the total annual collections.

“This is another reason for lower (GST) collections during the month of August as compared to that in July,” the Ministry said.

GST, which subsumed over a dozen local levies like excise, VAT, service tax, was implemented on July 1, 2017.

Besides, the last date of filing GST returns for July, 2018, in Kerala was extended up to October 5 2018, in view of flood in the state.

Print Rate this article:
No rating

Number of views (296)/Comments (0)

rajyashree guha

PTI

Other posts by PTI
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free