GST collection in January crossed Rs 1 lakh crore up from Rs 94,725 crore mopped up in December 2018. The collection collection was Rs 89,825 crore during the same month last year, Ministry of Finance said. The GST collection was higher despite measures to lower tax burden on consumers.
However, the final details of GST collections for January will be intimated on February 2, the ministry said in a tweet. It is for the second time that collections have crossed Rs 1 lakh crore in this fiscal.
“Exceeding 1 lac crore mark for the third time this fiscal comes as a welcome relief for the Government, particularly after some dip in the last month. This again underlines that collections are increasing steadily as compliances are getting simplified, rates are getting reduced and administration is getting sharper. That said, it’s clear that overall collection for the entire year would be significantly lower than what was budgeted,” said Pratik Jain, Partner & Leader, Indirect Tax, PwC India.
He also said that the estimated collections in the next financial year would reflect the collection trend in the current year.
With tax rate cuts on 23 items announced by the GST Council in December coming into effect from January 1, the collections next month may remain subdued too, the experts had expected. The collection for December 2017 at Rs 86,703 crore too was nearly 4 per cent lower than the average monthly collection in the 2017-18 fiscal.
The overall GST revenue shortfall is nearly Rs 15,000 crore per month in the April-December period compared with the budget estimate for the current fiscal.
The GST collection stood at Rs 1.03 lakh crore in April, Rs 94,016 crore in May, Rs 95,610 crore in June, Rs 96,483 crore in July, Rs 93,960 crore in August, Rs 94,442 crore in September, Rs 100,710 crore in October and Rs 97,637 crore in November.