GST collection for September shoots up touching Rs 94,000 Cr
New Delhi, October 1: Unlike August, the Goods and Service tax collection in September witnessed an upswing. In September, the revenue collected under GST touched Rs 94,000 crore. Goods and Services Tax (GST) revenue for August was the lowest in the five months so far this fiscal.
In July the collection was Rs 96,483 crore, in June it was Rs 95,610 crore, in May Rs 94,016 crore and in April Rs 1.03 lakh crore. The total revenue earned by Central Government and the State Governments after settlement in the month of September, 2018 is Rs 30,574 crore for CGST and Rs. 35,015 crore for the SGST.
The revenues collected in September, 2018 of Rs 94,442 crore shows an upward trend as compared to August, 2018 collection of Rs. 93,690 crore. The chart shows trends in revenue during the current year.
However, compliance improved as 67 lakh GSTR-3B or summary sales returns were filed during August, up from 66 lakh filed in July. The August revenue collections reflect the purchase and sales activities conducted in the month of July.
Explaining reasons for the dip, the ministry said one of the main factors is probable postponement of sale of items for which tax rate was reduced by the GST Council in its meeting on July 21.
The rate cut on 88 items, including sanitary napkins, fridge, small screen TV, washing machine, footwear, among others, was effective July 27. Only 35 items were left in the highest tax bracket of 28% after the latest round of rate cuts.
Since it would have taken some time for the market to pass on the benefit of reduced taxes, consumers would have postponed their decision to buy expecting the benefit. The actual impact of reduction of rate of taxes would be observed only from next month onwards as the rate reduction would have got affected only in last few days of the month, the ministry said.
The GST Council hoped that tax reduction would reduce the cost to the consumers, thereby increase their purchasing capacity and add to the increased consumption in the economy.