GST collections rose to Rs 1,67,929 crore in November – a 15.1% rise year-on-year – following strong domesticdemand during the festival season and greater focus on compliance. It was the fastest pace of expansion since last December. Central GST accounted for Rs 30,420 crore, state GST for Rs 38,226 crore. The finance ministry said that revenue from domestic transactions, including services imports, was 20% higher on a year-on-year basis.Some experts, however, said tGST department‘s notices may have resulted in assessees depositing money.
At 15%, GST kitty expands at fastest pace in 11 months
NEW DELHI: Goods and services tax (GST) collections rose 15.1% to Rs 1,67,929 crore in November as strong domestic demand during festival season and the focus on compliance resulted in the fastest pace of expansion since last December.
Latest data released by the finance ministry showed that in November (for transactions in October), integrated GST (IGST) on imports grew 1.5% to Rs 39,198 crore, indicating that shipment of goods into the country slowed down after the double-digit rise reported in the previous month. Overall, IGST collections rose 12.8% to Rs 87,000 crore, indicating that inter-state transactions drove the mop-up.
Central and state GST collections too pointed to strong domestic demand with the former growing 18.5% to Rs 30,420 crore in November. State GST kitty swelled 17.1% to 38,226 crore, official numbers showed. The finance ministry said that revenue from domestic transactions, including services imports, was 20% higher on a year-on-year basis.
Some of the tax experts, however, said that the GST department’s notices may have resulted in assessees depositing money.
“Notice issuing time for the year 2017-18 has expired on September 30, 2023 and for FY2018-19 will lapse in December 2023. Due to this, the GST departments have seen heightened activity this fiscal, and this has resulted in burgeoning revenues as demands (notices) are issued by these departments and pre-deposits are collected, even as taxpayers go to appeals. There is competition among state GST departments so to say… The central GST department, as always, has been aggressive on the revenue front. This has primarily led to upsurge in GST revenues,” said Vivek Jalan, partner at Tax Connect Advisory.
Most experts expect the trend to continue with the full year target likely to be breached. “The upward trend in GST collections continues as expected on the back of festival season and further increase in audits and investigations. This trend is likely to continue for the remainder of this fiscal as well. It’s interesting to see that robust growth in GST (compared to last year) is seen in most of the manufacturing states, indicative of uplift in demand and consumption,” said Pratik Jain, partner at Price Waterhouse.
At 15%, GST kitty expands at fastest pace in 11 months
NEW DELHI: Goods and services tax (GST) collections rose 15.1% to Rs 1,67,929 crore in November as strong domestic demand during festival season and the focus on compliance resulted in the fastest pace of expansion since last December.
Latest data released by the finance ministry showed that in November (for transactions in October), integrated GST (IGST) on imports grew 1.5% to Rs 39,198 crore, indicating that shipment of goods into the country slowed down after the double-digit rise reported in the previous month. Overall, IGST collections rose 12.8% to Rs 87,000 crore, indicating that inter-state transactions drove the mop-up.
Central and state GST collections too pointed to strong domestic demand with the former growing 18.5% to Rs 30,420 crore in November. State GST kitty swelled 17.1% to 38,226 crore, official numbers showed. The finance ministry said that revenue from domestic transactions, including services imports, was 20% higher on a year-on-year basis.
Some of the tax experts, however, said that the GST department’s notices may have resulted in assessees depositing money.
“Notice issuing time for the year 2017-18 has expired on September 30, 2023 and for FY2018-19 will lapse in December 2023. Due to this, the GST departments have seen heightened activity this fiscal, and this has resulted in burgeoning revenues as demands (notices) are issued by these departments and pre-deposits are collected, even as taxpayers go to appeals. There is competition among state GST departments so to say… The central GST department, as always, has been aggressive on the revenue front. This has primarily led to upsurge in GST revenues,” said Vivek Jalan, partner at Tax Connect Advisory.
Most experts expect the trend to continue with the full year target likely to be breached. “The upward trend in GST collections continues as expected on the back of festival season and further increase in audits and investigations. This trend is likely to continue for the remainder of this fiscal as well. It’s interesting to see that robust growth in GST (compared to last year) is seen in most of the manufacturing states, indicative of uplift in demand and consumption,” said Pratik Jain, partner at Price Waterhouse.