“We seem to be comfortable… The Redline has been crossed in the first month itself. “Not many had thought that the redline would be crossed in the first month itself.” Finance Minister Arun Jaitley said at his briefing on the first set of data on tax collections on Tuesday. 

As said by Mr. Jaitely, the estimated total collections of GST was targeted at Rs.92,283 crore. As per the Budget targets, the July’s tax revenues for central government should be Rs.48,000 crore and that for state government should be Rs.43,000 crore, adding which comes to Rs.91,000  crore. This specifies that the collections of July i.e., Rs.92,000 crore has exceeded the target of Rs.91,000 crore.

Informed by the FM, that the said collections exclude the compensation cess and a significant number of assesses who has not yet filed the returns.

Of the total, central GST accounted for Rs 14,894 crore, state GST for Rs 22,722 crore and integrated GST for Rs 47,469 crore, which includes Rs 20,964 crore on imports. IGST is levied on inter-state movement of goods and imports and is equal to CGST and SGST. The compensation cess amounts to Rs 7,198 crore, of which Rs 599 crore is that on imports. 

The total no. of taxpayers to file their returns were 5.96 million if those that registered in August and those opting for the composition scheme were excluded. Out of the same, 3.84 millions have filed the returns – 64.42% of the total.

IGST will be allocated between CGST and SGST to the extent it has been used for payment of either of them. This allocation will be based on the cross-utilization report to be received from the GST Network (GSTN), the technological backbone of the system. 

FM added, it has to be seen whether any state needs to be compensated. It is hoped that the tax collection number would “somewhat increase” with greater compliance.

Of the total 7.23 million taxpayers, 5.85 million have fully migrated to GSTN, while 1.38 million are yet to complete procedural formalities. The number of new taxpayers that registered with GSTN up to August 29 was 1.883 million. 

Sources –The Economic Times

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