As many as 17 days have passed since the GST Council slashed tax on as many as 200 items, and the latest GST collections figures are here. A finance ministry statement said the total collection on the Goods and Service Tax (GST) for October slipped by almost 10 per cent to Rs 83,346 crore as compared to Rs 92,000 crore in the previous month.
In a major rejig of GST rates, Finance Minister Arun Jaitley on November 10 announced a 10 per cent cut in tax on over 200 goods ranging from chocolates to cosmetics to artificial fur coats and wrist watches. As many as 50.1 lakh Goods and Services Tax (GST) returns were filed for October. The ministry attributed the drop in collections to rates on several commodities being cut and tax administration being based on self-declaration as matching of returns, electronic transit permit system or e-way bill and reverse charging being postponed.
Also, there was additional tax inflow on inter-state movement of goods, called Integrated-GST or IGST, in the first three months. The GST, which was implemented from July 1, has subsumed over a dozen central and state levies including excise duty, service tax and VAT. The revenues collected are split between the Centre and states in a pre-decided formula.
The finance ministry said Rs 10,806 crore was released to states from the revenue collected from levy of cess on luxury and sin goods, in July and August. A compensation of Rs 13,695 crore for September and October is being released, it added. The compensation is to make up for any loss of revenue to the states arising from implementation of the GST. "The states' revenues have been fully protected taking base year revenue as 2015-16 and providing a projected revenue growth rate of 14 per cent," the ministry said.
As per official data available, GST collections in the maiden month of July was over Rs 95,000 crore while in August, the figure was over Rs 91,000 crore. In September, it was over Rs 92,150 crore. October is the fourth month of GST rollout. Explaining the downward trend in tax revenue under GST, the ministry said initially Integrated GST was paid on transfer of goods from one state to another. "As and when the final transaction of these goods takes place, the credit for IGST is being utilised for payment of SGST and CGST and therefore, the inflow of new taxes is low," it said.
With PTI inputs