GST collections drop to ₹93,960 crore in August as tax cuts begin to impact
GST collected in August was lower than Rs 96,483 crore in July and Rs 95,610 crore in June, according to the finance ministry
New Delhi: The combined Goods and Services Tax (GST) revenue collected by union and state governments dipped marginally by 2.6% in August to ₹93,960 crore as the tax cuts on consumer goods announced in July started telling on revenue receipts.
The tax reduction on washing machines, small televisions, air conditioners and other items announced by the GST Council on 21 July was effective from 27 July.
In July, the combined GST collection was ₹96,483 crore and in June, ₹95,610 crore. An official statement said one of the reasons for the dip in collections is the probable postponement of purchase decisions by consumers who awaited the rate cuts to become effective in the supply chain.
The actual impact of the rate cuts is expected to be felt in September when taxes for August transactions will be collected. Pratik Jain, partner, PwC said the slight dip in collection was not unexpected. “The full impact of rate cut will become visible in September collections. Government would hope that collections in next few months will improve on the back of spur in demand created by rate cuts and administrative tightening which has resulted in detection of several GST related frauds recently,” said Jain.
Abhishek Jain, tax partner, EY said that an upward trend in revenue collection may be in place soon with data mining and scrutiny undertaken by tax authorities.
- Francois Hollande’s initial Rafael remarks questionable: Arun Jaitley
- Narendra Modi launches Ayushman Bharat scheme from Jharkahnd’s Ranchi
- We have no role in selection of Reliance Defence for Rafale deal: Govt
- Rahul asks Modi to reply to Hollande’s claim on Rafale
- Rafale deal: French govt says not involved in choice of Indian partners
Editor's Picks »
- India’s renewable energy sector hits a milestone but loses speed
- All eyes now on share swap ratio in this mega bank merger
- Jet Privilege can actually get higher valuation than Jet Airways
- Profitability of cement firms to take a hit due to weak prices, high costs
- Pidilite’s shares hold their ground despite weak rupee and rising crude