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GST revenue reverses its falling trend; rises to Rs 86,703 crore in December

Total collections under GST in November had slipped for the second straight month to Rs 80,808 crore, from over Rs 83,000 crore in October.

Mail Today Bureau   New Delhi     Last Updated: January 26, 2018  | 17:50 IST
GST revenue reverses its falling trend; rises to Rs 86,703 crore in December

GST collections picked up momentum in December to touch the Rs 86,703 crore mark, reversing the decline over the preceding two months which was worrying the government as it struggles to keep the fiscal deficit in check.

"Total revenue collections under GST for the month of December 2017 which were received in December 2017 and January 2018, has been Rs 86,703 crores till January 24," the Finance Ministry said in a tweet.

Total collections under the Goods and Services Tax (GST) in November had slipped for the second straight month to Rs 80,808 crore, from over Rs 83,000 crore in October.

In September, the GST collections had crossed Rs 92,150 crore and it was expected that revenues would rise further.

The finance ministry further said that one crore taxpayers have been registered under GST till January 24, of which 17.11 lakh are composition dealers who are required to file returns every quarter. As many as 56.30 lakh GSTR 3B returns have been filed for December, it said.

For the composition dealers, for the July-September quarter, the last date of filing GSTR 4 return was December 24, it said. A total of 8.10 lakh returns were filed by them amounting to Rs 335.86 crore.

For the October-December quarter, the last date for filing GSTR 4 return was January 18, and a total of 9.25 lakh returns were filed by composition dealers paying a sum of Rs 421.35 crore, it added.

GST had become hot political potato during the assembly elections in key states including Gujarat and the Centre was forced to ease off on the rigours of the system to prevent a voter backlash.

In fact finance minister Arun Jaitley had himself gone to Gujarat to assure the sizable trading community that they would be allowed to file returns under the more lenient composition scheme which is easier to comply with.

However, the flip side is that collections coming under the scheme are too low. The finance minister had disclosed that tax revenues from businesses opting for composition scheme was a matter of serious concern as 17 lakh businesses who have opted for the scheme have paid a cumulative tax of Rs 307 crore in the first quarter.

"There seems to be under declaration as far as collections from composition scheme are concerned," he had pointed out.

The all-powerful GST Council had last week cut the tax rate on 29 goods, including second-hand cars, confectionery and biodiesel. The tax on 54 categories of services, including certain job works, tailoring services and admission to theme parks, has been lowered.

The Council, in its 25th meeting also discussed the process to make filing of GST returns simpler with just one return to be filed every month.

The Council discussed the possibility of retaining only GSTR-3B or initial sales return, while mandating sellers to upload their invoices.

 

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