January 25, 2018
The Ministry of Finance on Thursday said that one crore taxpayers have been registered under total revenue collections under GST GST so far till 24th January, 2018, and the collections for the month of December 2017 was at Rs. 86,703 crores, as on 24th January 2018.
Further, of the one crore taxpayers that have been registered under GST so far till 24th January, 2018 17.11 lakh are Composition Dealers which are required to file returns every quarter.
The GST revenues have been tapering since the implementation of the new indirect tax regime. According to latest data, the total Goods and Service Tax collection has been Rs 80,808 crore in November. A sum of Rs 83,346 crore was collected as the total revenue collection under the GST for October.
“The challenge for the government is to ensure that the overall revenue does not go below the earlier indirect tax collections. One of the purposes of the government spending and investment in infrastructure is to propel GDP growth. A 100 basis points fall in GDP has had a deep impact on indirect tax collections and that is evident in the GST numbers. That is something the government will look to urgently address in this Union Budget,” Angel Broking said in a recent note.
Raising concerns over the fall in tax collections, West Bengal Finance Minister Amit Mitra pointed out recently pointed out that states are facing a revenue shortfall of Rs 39,111 crore in the first four months of the new regime.
“The next issue is there has been a revenue shortfall of Rs. 39,111 crore in the first four months of rollout of the goods and services tax. In the GST council, the government had budgeted a revenue shortfall of Rs 55,000 crore. At the current rate, even if we see improvement, we will end up at Rs 80-85,000 crore,” he said. Amit Mitra also pointed out that the small and medium enterprises have been most hurt. “Why has it (collection) fallen? SMEs have not been able to fill in. There has been a 40% decline in production for a few SMEs,” Amit Mitra said.
[The Financial Express]