Rising Imports, Computer Raids Improve GST Collection In India


Photo used for illustration purposes.

Gross GST revenue collected in December 2021 was Rs.129,780 crore, 13% more than GST revenue collected in the same month of 2020 and 26% more than GST revenue in December 2019.

In December 2021, income from imports was 36% higher and income from domestic transactions (including import of services) was 5% higher than income from these sources collected in the same month of 2020.

The average monthly gross GST collection for the third quarter of the current fiscal year was Rs 1.30 lakh crore against the average monthly collection of Rs 1.10 lakh crore and Rs 1.15 lakh crore in the first and second quarter, respectively.

GST collection for December 2021 was close to Rs1.30 lakh crore despite a 17% reduction in the number of electronic invoices generated in November 2021 (6.1 crore) compared to October 2021 (7, 4 crore). crore) due to better tax compliance and better tax administration by central and national tax authorities.

Coupled with the economic recovery, anti-evasion activities, especially measures against bogus billers, have contributed to the increase in the GST. The improvement in revenues is also attributable to various rate rationalization measures taken by the GST Board to correct the inverted tariff structure. The positive trend in revenues is also expected to continue in the last quarter, the finance ministry said.

Gross GST revenue collected in December 2021 was Rs.129,780 crore, including rupee 22,578 crore, SGST rupee 28,658 crore, IGST rupee 69,155 crore (including rupee 37,527 crore Rs levied on importation of goods) and cess Rs 9,389 crore (including Rs 614 crore levied on importation of goods).

The government settled Rs25.568 crore to CGST and Rs21.102 crore to SGST from IGST as regular settlement. Total Central and State revenues in December 2021 after the settlements were Rs 48,146 crore and Rs 49,760 crore, respectively.

GST collection in India increased by 13% in December 2021 on an annual basis to reach Rs 1,29,780 crore.

However, collections for December have declined on a sequential basis from the Rs 1,31,526 crore reported for November.

“The revenue for the month of December 2021 is 13% higher than the GST revenue for the same month of last year and 26% higher than the GST revenue for December 2019,” the finance ministry said in a statement. .

“During the month, income from importing goods was 36% higher and income from domestic transactions (including importing services) was 5% higher than income from these sources over the course of the month. from the same month last year. “

Accordingly, the overall collection includes CGST of Rs22.578 crore, SGST of Rs28.658 crore, IGST of Rs69,155 crore and cess of Rs9.389 crore.

In addition, the Center settled Rs25.568 crore to CGST and Rs21.102 crore to SGST from IGST as regular settlement.

Therefore, the total income of the Center and States last month after settlements is Rs 48,146 crore for CGST and Rs 49,760 crore for SGST.

“GST collection during the month is close to Rs1.30 lakh crore despite a 17% reduction in the number of electronic invoices generated in November 2021 (Rs 6.1 crore) compared to October, 2021 ( Rs7.4 crore) due to better tax compliance and better tax administration by central and state tax authorities. “

“The average monthly gross GST collection for the third quarter of the current year was Rs1.30 lakh crore against the average monthly collection of Rs1.10 lakh crore and Rs1.15 lakh crore in the first and second quarters respectively. “

In addition, the ministry said that the economic recovery, anti-evasion activities, especially actions against bogus billers, have contributed to the increase in the GST.

“The improved revenue is also due to various rate rationalization measures taken by the Council to correct the inverted tariff structure.”

“The positive trend in revenues is also expected to continue in the last quarter.”

Meanwhile, India Inc welcomed the GST Council’s decision to postpone the proposed GST hike on textiles.

According to reports, the council deferred the proposal on the backs of state government and industry reservations.

The proposal was to increase the rate of the GST on clothing from 5 to 12 percent.

“A great relief for the textile and clothing industry – we enter 2022 with new optimism as the great fear recedes – a great and timely gift from the GST Council,” said Sanjay K. Jain, Chairman and CEO of the ICC National Textiles Committee, TT Limited.

“I cannot express in words the great relief we feel, having lived in fear since September.” According to Bimal Jain, chair of the IDT PHDCCI committee, the postponement will provide much needed boost and support to the sector.

“A large number of small and medium taxpayers were concerned about the proposal to increase GST rates and this decision of the GST Council is a step in the right direction and it is advisable to build the confidence of traders before raising rates. GST in the future. ” Meanwhile, the Confederation of All Indian Traders (CAIT) also welcomed the decision.

In addition, the confederation urged to postpone the decision to also increase the rate of GST on footwear.

CAIT urged Union Finance Minister Nirmala Sitharaman to form a “task force” to examine the intricacies of the tax system, its simplification and streamlining, increasing the tax base and revenue for the government. government.

The task force, CAIT said in a statement, could be formed under the chairmanship of the chairman of the Central Indirect Taxation Council, which is expected to include trade representatives alongside senior officials.

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