A
sum of Rs 83,346 crores has been collected as Total Revenue Collection under
GST for the month of October, received in November till 27th
November 2017. 95.9lakh taxpayers have been registered under GST so far, of
which 15.1 lakh are composition dealers who are required to file returns every
quarter. 50.1 lakh returns have been filed for the month of October till 26th
November 2017.
Revenue of States: The States have
collected a total of Rs. 87,238 crores by way of SGST in the months of August,
September, October and November 2017 (till 27th November). Further
on all inter-state trade, a net amount is transferred from IGST account to the
SGST account whenever IGST collected is used for payment of SGST. By way of
settlement an amount of Rs. 31,821 crores has been released to the States for
the months of August, September and October 2017. Rs13,882 crores is being
released by way of settlement to all the States for the month of November 2017.
Further, as per Goods and Services (Compensation to States) Act 2017, the
States revenues are fully protected against any shortfall in GST collections.
A compensation amount of Rs. 10,806 crores has been released to all the States
for the months of July and August 2017 and a compensation of Rs.13,695 crores
for the months of September and October 2017 is being released. The States
revenues have thus been fully protected taking base year revenue as 2015-16 and
providing for a projected revenue growth rate of 14%.
Centre’s Revenue: The total CGST
income in the months of August, September, October and November (till 27th
November) has been Rs.58,556 crores. In addition to this, an amount of Rs.16,233
crores has been transferred from IGST account to CGST account by way of
settlement of funds on account of inter-state supply of goods and services in
the month of August, September and October, 2017. Further, Rs. 10,145 crores
is being transferred to CGST account from IGST account for the month of
November 2017 by way of settlement. The major reason for the gap in income of
CGST and SGST has been that more CGST liability has been discharged using transition
credit rather than by way of cash. Thus, taxpayers are using the balance
credit available with them in the previous tax regime, which is the reason why
there is an additional revenue gap in the Centre’s revenue.
The
reason for downward trend of tax revenue under GST could be attributed to the
following factors :
·
Because
of the first time requirement of paying IGST on transfer of goods from one
state to another state even within the same company, there was an additional
cash flow of IGST in the first 3 months. 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;
·
Since
the overall incidence of taxes on most of the commodities have come down
under GST, it would naturally have some implication on the revenues of the
Government.
·
The
tax administration of GST is now based on self-declared Tax Return, in which
the assesse decides on his own how much tax liability he has and claims input
tax credit as per his own calculations. Since implementation of some of the
main features of GST such as, matching of returns, e-way bill as well as
reverse charge mechanism have been postponed the tax compliance may not be up
to the mark.
·
Returns filed: The total number of
GSTR 3B returns filed for the return period July, August, September and October
2017 till 26th November is 58.7 lakh, 58.9 lakh, 57.3 lakh and
50.1 lakh respectively.
DSM/SBS