#GSTimpact : Over 50 lakh returns filed, Rs 83346 Cr collected in October month
Source :NewsBharati   Date :27-Nov-2017

New Delhi, November 27: After taxes on most commodities have come down, the total collection of GST is slipped to Rs 83346 crore, from over Rs 92000 crore last month. Also, 50.1 lakh returns have been filed for the month of October till 26th November 2017.

The finance ministry statement said “the Centre has released a compensation of Rs 10,806 crore to states for July and August. A compensation of Rs 13,695 crore for September and October is being released, it added.

“The states’ revenues have been fully protected taking base year revenue as 2015-16 and providing a projected revenue growth rate of 14 percent,” the ministry said.

As per data available, GST collections in the maiden month of July was over Rs 95,000 crore while in August, the figure was over Rs 91,000 crore. In September, it was over Rs 92,150 crore.

Explaining the downward trend in tax revenue under GST, the ministry said initially Integrated GST was paid on transfer of goods from one state to another.

“As and when the final transaction of these goods takes place, the credit for IGST is being utilised for payment of SGST and CGST and therefore, the inflow of new taxes is low,” it said.

Also, since the overall incidence of taxes on most of the commodities has come down under GST, it would naturally have some implication on the revenues of the government, the ministry said.

“The tax administration of GST is now based on self-declared Tax Return, in which the assesse decides on his own how much tax liability he has and claims input tax credit as per his own calculations. Since implementation of some of the main features of GST such as, matching of returns, e-way bill as well as reverse charge mechanism have been postponed the tax compliance may not be up to the mark.”

Also, the total number of GSTR 3B returns filed for the return period July, August, September and October 2017 till 26th November is 58.7 lakh, 58.9 lakh, 57.3 lakh and 50.1 lakh respectively.

October is the fourth month of GST rollout. Over 200 goods and eating out have become cheaper from 17 November. Union Finance Minister Arun Jaitley had announced major GST relief to promote ease of doing business after the GST Council met in Guwahati last week. Jaitley had said, GST on 178 items has been reduced to 18 percent from 28 percent.