Rs 1-L cr GST collection in April a record

GST collection in April surpasses Rs 1 lakh crore to Rs 1,03,458 crore

Rs 1-L cr GST collection in April a record

The collections in April - the highest-ever since the GST launch in July 1 previous year - were also bolstered by the "March effect", when companies generally pump up sales to boost their annual performance. Last week, the Finance Ministry said Rs.7.19 lakh crore was mobilised from the GST during the period of August 2017 to March 2018.

"This represents a tipping point in the GST collection in India and indicates that the tax collections are stabilising- it is now essential to allow the reform to stabilise and not keep making constant changes as simplification and stability are essential attributes of increased tax compliance", said M.S. Mani, a partner at Deloitte India.

April was also the month for filing of quarterly return for Composition Dealers.

Compliance rate sores up to 69.5%.

The MoF is obviously going to town with the data - Finance Minister Arun Jaitley termed it a "landmark achievement". The total gross GST revenue collected in April was Rs 1,03,458 crore, of which CGST was Rs 18,652 crore, SGST Rs 25,704 crore, IGST Rs 50,548 crore (including 21,246 crore collected on imports) and cess was Rs 8,554 crore (including Rs 702 crore collected on imports).

The Finance Ministry said that this is the first occasion that the monthly revenue has breached the 1 trillion milestone.

The total revenue earned by the Central government and the state governments after settlement in the month of April, 2018 is Rs.32,493 crore for CGST and Rs.40,257 crore for the SGST. "With anti-evasion mechanisms such as e-way bills becoming mandatory from April 1 2018, it is expected that the Rs 1 lakh crore benchmark would be sustainable in the coming months".

The report says that March is seasonally a strong month for the overall activity, and believes the higher April GST number (once adjusted for seasonality) is relatively moderate and does not reflect a pickup in tax buoyancy. "With the introduction of e-way bill system now, one can expect the collection for next month to also exceed Rs 1 lakh crore".

GST revenue buoyancy is expected to improve during the upcoming months after the electronic tracking of goods movement shows results after its implementation on 1 April 2018. Though, there would be some impact of [the] year-end push and adjustments, it is clear that compliance is steadily improving.

GST Council in its meeting scheduled for May 4 is likely to announce some new measures to improve compliance.

Latest News