GST collections have grown 4.9 % Y-o-Y as per RBI Monetary Policy.
As we know GST collections coming at an 18 month low for the month of September 2019, the Reserve Bank of India (RBI) in its Monetary Policy Report clarifies that there has been a modest year-on-year growth in the collection of the indirect tax.
“Notwithstanding month-over-month fluctuations, the GST collections grew by 4.9 percent (Y-O-Y) during April-September 2019,” said Reserve Bank of India
According to the RBI, the share of State Goods and Services Tax (SGST) collections in total GST revenue has been sizably higher than Central Goods and Services Tax (CGST), attributable to the adjustment for the input tax credit. After the apportionment of integrated GST (IGST) collections, the share of CGST collections remained significantly lower than SGST collections during April-September 2018.
In September, the total gross GST revenue was Rs 91,916 crore of which Central GST (CGST) was Rs 16,630 crore, State GST (SGST) was Rs 22,598 crore, Integrated GST (IGST) was Rs 45,069 crore (including Rs 22,097 crore collected on imports) and Cess was Rs 7,620 crore (including Rs 728 crore collected on imports)
RBI adds that SGST and CGST did move closer subsequently, before finally catching up in August 2019. “There have, however, been large inter-state variations in SGST collections, with a few states not requiring the GST compensation cess,” said RBI.
The Central Bank adds that plugging loopholes and mitigating information technology (IT) glitches such as putting in place an invoice-matching system to facilitate a system validated input tax credit, overcoming operational deficiencies of the payment module, alignment of system validations with the GST Acts and Rules along with alleviating system design deficiencies may facilitate tapping of GST potential.
News Source: Economic Times & Image Source: VERVE