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GST Collection Falls To 19-Month Low In September
The Goods and Services Tax (GST) collection in September declined to Rs. 91,916 crore, as against Rs. 98,202 crore in the preceding month.
New Delhi: The Goods and Services Tax (GST) collection has declined to a 19-month low and dropped to Rs. 91,916 crore in September, showed government data released on Tuesday, increasing the risk of fiscal slippage at a time demand remains weak in India. In the previous month, the collection was Rs. 98,202 crore, according to the data. There has been a 2.67 per cent drop from revenue collection in the same month a year ago, which was at Rs. 94,442 crore.
"The total gross GST revenue collected in the month of September, 2019 is Rs. 91,916 crore of which CGST is Rs. 16,630 crore, SGST is Rs. 22,598 crore, IGST is Rs. 45,069 crore (including Rs. 22,097 crore collected on imports) and cess is Rs. 7,620 crore (including Rs. 728 crore collected on imports)," the Finance Ministry said in a release.
The total number of GSTR 3B returns (summary of self-assessed return) filed for the month of August (up to September 30) was 75.94 lakh.
The government has settled Rs. 21,131 crore to CGST and Rs. 15,121 crore to SGST from IGST as regular settlement.
The gross GST collections comprised of Rs. 16,630 crore collection through Central-GST (CGST), Rs. 22,598 crore in State-GST and Rs. 45,069 crore through Integrated-GST (IGST).
The total revenue earned by the central government and the state governments after regular settlement in September was Rs. 37,761 crore for CGST and Rs. 37,719 crore for the SGST, it said.
During April-September, the domestic component has grown by 7.82 per cent, while the GST on imports has shown negative growth and the total collection has grown by 4.90 per cent, it added.
The lower indirect tax collection is set to put further pressure on the government finances.
With government already committed to scaling up public spending to boost the sagging economy, lower GST collection could change its fiscal maths.
The government needs an average monthly collection of more than 1 trillion rupees every month to meet its budget target.
By lowering corporate tax it has already taken a big bet. The lower collection will further exacerbate the risk of the country slipping from its fiscal deficit target of 3.3 per cent of gross domestic product in 2019/20, especially after government tax revenue for the current fiscal year was reduced by Rs. 1.45 lakh crore due to the corporate tax cut.
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