GST Collection of India

An Analysis of Goods & Services Tax (GST) collection of India

Abstract

This article focuses on the economic consequences of Goods and Services Tax personified newly in the Indian Tax collection program by means of the data provided. The article also discusses the anticipated barriers or suggestions for GST. The Goods and Services Tax (GST) is a vast notion that simplifies the tax structure by supporting and augmenting the economic growth of a developing nation. It is one direct tax for the entire country. In this article we also discuss the history of GST at a glance.

GST at a Glance-:

Ø  2006: First announcement of GST was made by the union minister of India during  2006-2007  budget session, that it would be introduced on April 1, 2010.

Ø  2009:  Empowered committee released the first discussion paper.

Ø  2011:  115th  amendment bill was introduced and subsequently lapsed

Ø  2014:  122nd amendment bill was introduced in Lok Sabha.

Ø  August 2016:  101 amendment act was enacted

Ø  September 2016:   the first GST council meeting was conducted

Ø  March 2017:   CGST, SGST, IGST, UTGST and compensation cess act was recommended by GST council.

Ø  April 2017:   CGST ,SGST ,IGST , UTGST and compensation  cess act were passed

Ø  1 July 2017:   GST laws, goods and services tax was launched all over India.

Ø  7 July 2017:  Jammu and Kashmir state legislature passed its GST

GST  is a comprehensive value added  tax (VAT ) on goods and services It is collected on value added at each stage of sale or purchase in the supply chain.  No differentiation between goods and services as GST is levied at each stage in the supply chain. At all stages of production and distribution, tax is borne by the final consumer of the good.

The march revenue collection is based on the business conducted in February. Due to impact of Covid-19 and the consequent of lockdown in whole India, the revenue collection of April 2020 must go into dip much Furth. Here the data provided for the revenue collection for Financial year 2018-19 and 2019-20 and state wise GST collection of March 2020 (data collection method is secondary, the main source of data is Press Information Bureau of India)

GST Revenue Collection for March, 2020

The gross GST revenue collected in the month of March, 2020 is Rs. 97,597crore of which CGST is Rs. 19,183 crore, SGST is Rs. 25,601 crore, IGST is Rs. 44,508 crore (including Rs. 18,056 crore collected on imports) and Cess  is Rs. 8,306 crore (including Rs. 841 crore collected on imports). The total number of GSTR-3B Returns filed for the month of February up to 31st March, 2020 is 76.5 lakh.

The government has settled Rs. 19,718 crore to CGST and Rs. 14,915 crore to SGST from IGST as regular settlement. In addition, Centre has also apportioned unsettled balance IGST of Rs. 6000 crore on ad-hoc basis in the ratio of 50:50 between Centre and States/UTs. The total revenue earned by Central Government and the State Governments  after regular settlement in the month of March,2020 is Rs. 41,901 crore for CGST and Rs. 43,516 crore for the SGST.

The GST revenues during the month of March, 2020 from domestic transactions has shown a negative growth of 4% over the revenue during the month of March, 2019. Taking into account the GST collected from import of goods, the total revenue during March, 2020 has also decreased by 8% in comparison to the revenue during March, 2019.

For the full financial year, 2019-20, the GST for domestic transaction has shown a growth rate of 8% over the revenues during last year. During the year, GST from import on goods fell down by 8% as compared to last year. Overall, gross GST revenues grew at 4% over the last year’s GST revenue.           

Suggestions

Here are some suggestions with respect to the better implementation of the GST act to give a boost to the Indian Economy-

1.      Government should take a clear cut decision in rates of GST

2.      Slabs must be reduce into 2 or 3 categories.

3.      Role of various individual tax payers should be known.

4.      There should be various awareness camps for the implementation of the GST in India

Conclusion-

GST implementation is one of the best decision taken by the Government. It helps the Government to combine all the revenue collection of whole India under one umbrella. The lawmakers of the country made this act for the smooth functioning of the revenue collection without any confusion  and complexities between the states with respect to tax. Also, there are some drawbacks or be can say that loopholes in this law, which can be fixed by the Government of India for well functioning of this GST act which better the economy of the India and  open a door for the foreign investments.

Pic Credit –  http://gstcouncil.gov.in/gst-revenue

Source –  PIB MINISTRY OF FINANCE , GST COUNCIL

-Ankit Sharma