September GST at Rs 944 billion, continues to be lower than expected

September GST at Rs 944 billion, continues to be lower than expected
  • 1

New Delhi, Oct 1: Collection of goods and services tax (GST) stood at Rs 944 billion in September 2018, marginally improving by 0.5 per cent over collections that stood at Rs 940 billion in August.
Year-on-year, GST collections improved 2.5 per cent over September 2017 mop up of Rs 922 billion. The y-o-y growth in August was 3.3 per cent.
This has brought down the average monthly GST collection in 2018-19 marginally, from Rs 967 billion (April – August) to Rs 963 billion (April – September).
Sources in the government pointed to two reasons for the tepid growth in GST collections.
Firstly, the rate reduction for various items in successive council meetings have had a downward impact.
Secondly, due to explicit political concerns in an election year, the tendency to assess and penalize for non-compliance has reduced.
For the second time in the financial year, the collection of Integrated GST crossed Rs 500 billion in September. It had sneaked above the mark in April, when the monthly overall GST collection had crossed Rs 1 trillion for the first time.
Apart from Rs 500 billion as IGST, Rs 153 billion was collected as SGST, Rs 210 billion as CGST and just less than Rs 80 billion as compensation cess.
The total revenue earned by Centre and the states after IGST settlement stood at Rs 306 billion for central GST and Rs 350 billion for state GST. The remaining part of IGST remains to be apportioned.
About 6.7 million GSTR-3B returns have been filed in September, almost as many as in August.