Upswing in economy, GST revenue collection for April exceeds 1 lakh Cr

New Delhi, May 1: Welcoming the first day of May with a good news, the Goods and Service Tax collection in the month of April has crossed the Rs 1 lakh crore mark for the first time since the new tax regime was rolled out on July 1 last year. The total gross revenue for April was Rs 1.03 lakh crore.

The total revenue earned by central and state governments after settlement in the month of April 2018 was at Rs.32,493 crore for CGST (Central GST) and Rs.40,257 crore for the SGST (State GST).

 

GST Collection Break-Up

• Central Goods and Services Tax: Rs 18,652 crore
• State Goods and Services Tax: Rs 25,704 crore
• Integrated Goods and Services Tax: Rs 50,548 crore
• Compensation Cess: Rs 8,554 crore

In a series of tweet, the Finance Ministry gave a detailed information of how the tax has been calculated and bifurcated accounting in the result of collection to almost exceeding 1 crore.

 

April was also a month for filing of quarterly return for composition dealers. Under the composition scheme, which is meant to lower the burden of agreement for small businesses, assesses have to pay tax at a minimum rate based on their turnover. The Finance Ministry also informed that out of 19.31 lakh composition dealers, 11.47 lakh filed their quarterly return (GSTR 4) and paid total tax of Rs. 579 crore.

 

It has been notified that because of the evasion of e-way bill that had been rolled out in April 1, the impact has been quite evident because of the amount of collection. Expecting the e-way bill to be the strongest pillar of GST, it has been an important mechanism to check tax evasion under GST.

 

The revenue gap of each state is coming down over the last eight months, the finance ministry had said, adding the average revenue gap of all the states for the last year is around 17%. The GST collection is shared between the states and the centre.

 

The buoyancy in the collection of tax revenue has brought out an upsurge in the economy paving path for better agreement in the country. This is a straight answer to those who doubted if the imposition of GST would be right in terms of progress to the country. When the news of GST augmented, the whole nation kept wondering if this tactics of the Modi government will work.

 

And standing by their words, the financial year, the government mobilized Rs 7.41 lakh crore from the Goods and Services Tax (GST) during 2017-18. And now the tax collection for the month of April has made everyone shut who doubted if this tactics would work or not.