Revenue collection on account of GST, for states and union government, has dipped by 3 per cent in November. The overall figure fell to Rs 80,808 crore from Rs 83,346 crore in October, according to official data.
The government said that total tax collection under GST for November has been Rs 80,808 crore till December 25, 2017. Earlier, in July the government had collected Rs 92,283 crore, Rs 90,669 crore in August, and Rs 92,150 crore in September.
Out of the Rs 80,808 crore collected in November, Rs 13,089 crore is under the Central GST (CGST), Rs 18,650 crore under the State GST (SGST), Rs 41,270 crore under the Integrated GST (IGST) and Rs 7,798 crore from compensation cess.
According to revenue department officials, the fall in the tax collection is along expected lines, due on the back of large number of rate reductions, which came into effect on November 15. "We are hopeful that the collections will certainly improve in January," said a revenue department official in North Block.
“The dip in collection for November is on expected lines, as the rates of over 175 items were reduced from November 15 and refunds to exporters started recently,” Pratik Jain, leader, Indirect Tax, at PwC India, said in a statement.
“Even for December, there could be an impact of the opening credit claim, for which the last date is December 27. From January, the collection should stabilise.”
“There is also the factor of utilisation of GST credits, which did not come into play in the first two to three months in the new tax regime,” Abhishek A. Rastogi, Partner, Khaitan & Co., said.
According to Rastogi, the true number for GST would become evident after April, 2018. He also highlighted the systematic problems with the GST Network (GSTN), which could have marred revenue collections.
Going ahead, however, the government would try to put in place robust E-Way bill system and a stronger IT plan for making the GST implementation an overall success.
According to some economists in the government, reduction of rates in GST had also impacted collection. The revenue department is now hopeful that with the passage of the bill on luxury cess on vehicles, over and above their GST, would also boost collections going ahead.
"We are focusing on increasing compliance as the IT infrastructure and rules for GST become much more clearer and simpler," said a finance ministry official.
The GST Council is expected to look at matching of GST returns with invoices, with the help of an improved software being worked on by Infosys, by the start of the next fiscal, ministry officials informed.
For the time being, increasing compliance in GST is being seen as the next big step to bolster state and union government revenue collection from businesses and consumers, after finishing up with an IT housekeeping by end of the current fiscal.
