GST collection crosses Rs 1 lakh crore target in November after 3 months; second highest in FY20 so far – The Financial Express

The jump in the collection came amid the government taking a slew of measures in the last few months to boost growth.

After missing the Rs 1-lakh crore target for three consecutive months since August this year, GST collection in November finally crossed the mark. The collection for the last month stood at Rs 1,03,492 crore (8.50 per cent rise from October 2019) out of which CGST’s share was Rs 19,592 crore while SGST contributed Rs 27,144 crore, the government data showed. Share of IGST was Rs 49,028 crore and that of Cess was Rs 7,727 crore. IGST amount also included Rs 20,948 crore collected on imports while Cess share also included Rs 869 crore collected on imports. Importantly, the November collection was the second-highest amount after Rs 1,13,865 crore collected in April this fiscal year.

The November collection is the eighth time that the amount has crossed Rs 1-lakh crore target since GST was introduced in July 2017. The government settled Rs 25,150crore to CGST and Rs 17,431 crore to SGST from IGST as regular settlement. Central and state governments’ total revenue after settlement in November 2019 was Rs 44,742 crore for CGST and Rs 44,576 crore for the SGST, according to the data by the Ministry of Finance. The GST collection on domestic transactions saw a 12 per cent increase — highest during the year. However, imports collection remained negative with -13 per cent even as it improved from -20 per cent from last month.

Source: Ministry of Finance

Also read: After dismal Q2 GDP growth, this massive investment push by govt may boost economy; here are plans

GST collection for November 2019 has increased by 6 per cent from November 2018 collection of Rs 97,637 crore. However, it declined 5.29 per cent to Rs 95,380 crore in October 2019 from October 2018. Notably, the collection had increased by 3.76 per cent in comparison to September 2019, when it was Rs 91,916 crore. In September, the amount fell sharply to a 19-month low of Rs 91,916 crore.

The jump in the collection came amid the government taking a slew of measures in the last few months to boost growth even as the GDP growth has continued its downward spiral for the seventh consecutive quarter, falling to 4.5 per cent in the second quarter (July-September) of FY20, according to the official data released on Friday. Similarly, the output of eight core infrastructure industries contracted by 5.8 per cent in October.

Meanwhile, the Fifteenth Finance Commission Chairman N K Singh on Friday said that GST has been an iconic taxation reform that will improve compliance in the country. “GST (goods and services tax) was a far-reaching iconic reform related to the share of resources between the central and state governments. It is indeed a radical tax reform,” Singh said at an event. India shifted to this new indirect tax regime that aims to bring down tax compliance across the country and create a large single market. GST was formed after the amalgamation of 17 various central and state levies, including excise duty, service tax, and value-added tax.

via GST collection crosses Rs 1 lakh crore target in November after 3 months; second highest in FY20 so far – The Financial Express

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