Gross goods and services tax revenues crossed the lakh crore mark for the second consecutive month, with a collection of 1.03 lakh crore in December. This is nearly 9% more than the December 2018 GST collection of 94,726 crore, according to an official statement from the Ministry of Finance released on Wednesday.
Although the December 2019 collection of 1,03,184 crore is slightly lower than the November 2019 collection of 1,03,492 crore, it signals a recovery trend after GST gross receipts fell below the crore mark. lakh for the previous three months.
Tax analysts say the improvement reflects higher consumption during the holiday season in November, as well as the government’s increased focus on business compliance.
The amount is still below the ambitious monthly target of 1.1 lakh crore that the Center set last month for the remainder of the fiscal year, and the improvement is unlikely to be enough to allow the government to meet. its GST revenue targets for the year. The Center had budgeted 6.63 lakh crore in net GST revenue for the current fiscal year 2019-2020, of which it collected around 50% in the first eight months.
For the first time, the Ministry of Finance released a state breakdown of GST collection on domestic transactions, which shows growth of 16% compared to the same period a year ago. With the exception of Jharkhand and Lakshadweep, all other states and union territories saw growth in national GST collections compared to December 2018. Some of the northeastern states experienced the lowest growth rates. higher, with Arunachal showing an increase of 124%. , followed by Nagaland (88%), Manipur (64%) and Mizoram (60%). Jammu and Kashmir grew by 40%.
It comes at a time when a number of state governments have complained about declining GST revenues and requested pending compensation payments from the Center.
With GST collections exceeding 1,000 billion yen for two consecutive months, with many states reporting an increase in their monthly collections would make it a little easier to close the tax gap and reduce reliance on the tax. compensation, âsaid MS. Mani, partner, Deloitte India.
The levy of the GST on imports continued to contract, although the negative growth of -10% was a slight improvement from the -13% rate of the previous month.
Gross collections include CGST of 19,962 crore, SGST of 26,792 crore, IGST of 48,099 crore (including 21,295 crore collected on imports) and cess of 8,331 crore (including 847 crore collected on imports), according to the statement .