October GST collection declines to Rs83,346 crore amid rate cuts
GST collection in October slipped to Rs83,346 crore, from over Rs92,000 crore in September, as taxes on most commodities have come down
New Delhi: GST collection in October slipped to Rs83,346 crore, from over Rs92,000 crore in September, as taxes on most commodities have come down.
The total GST collection till 27 November is Rs83,346 crore for October and 50.1 lakh returns have been filed for the month, a finance ministry statement said.
The union government has released a compensation of Rs10,806 crore to states for July and August. A compensation of Rs13,695 crore for September and October is being released, the finance ministry added. “The states’ revenues have been fully protected taking base year revenue as 2015-16 and providing a projected revenue growth rate of 14%,” the finance ministry said.
As per data available, GST collection in July was over Rs95,000 crore while in August, the figure was over Rs91,000 crore. September GST collection stood at over Rs92,150 crore.
Explaining the downward trend in tax revenue under GST, the finance ministry said initially, Integrated GST (IGST) was paid on transfer of goods from one state to another. “As and when the final transaction of these goods takes place, the credit for IGST is being utilized for payment of SGST and CGST and therefore, the inflow of new taxes is low,” it said. Also, since the overall incidence of taxes on most of the commodities has come down under GST, it would naturally have some implication on the revenues of the government, the ministry added.
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