A good start for GST
The first estimates of goods and services tax (GST) collections are definitely encouraging. Finance minister Arun Jaitley said on Tuesday that receipts touched Rs93,000 crore in July, the first month after the national value-added tax was rolled out.
The final number is likely to be even higher once all firms pay their taxes. Around a third of those registered, or a little over 2 million enterprises, have not yet been able to do so during the transition to the new tax.
What this means is that GST collections will go up once all firms in the system pay their tax dues. However, those who have paid their GST dues will now claim input credits, which are so important in any system of value-added taxation.
So the net figure that will remain with the government will be known only later.
But the current trends indicate that the GST rollout has been successful till now, and all credit has to be given to the team that was in charge of what could have been a very turbulent transition.
- India’s sugar production set to reach record on higher yields
- India shows jobs growth as 3.11 million join EFP in six months
- Thun Group: Human rights with exceptions
- Reliance Nippon AMC Q4 net profit up 35% to Rs162 crore
- Alibaba’s Jack Ma says nations need own semiconductor technology to sidestep US control