The Goods and Services Tax (GST) collection hit a record high of Rs 1.06 lakh crore in March. “The record collection in March 2019 of the GST touching Rs 1,06,577 crore indicates the expansion in both manufacturing and consumption,” finance minister Arun Jaitley tweeted on Monday.
GST revenue collected in March 2019 is Rs 1,06,577 crore, of which Central Goods and Services Tax (CGST) is Rs 20,353 crore, State Goods and Service Tax (SGST) Rs 27,520 crore, Integrated Goods and Services Tax (IGST) Rs 50,418 crore (including Rs 23,521 crore collected on imports) and cess Rs 8,286 crore (including Rs 891 crore collected on imports. The ministry said in a statement these figures indicate that the revenue growth has been picking up in recent months despite various rate rationalisation measures.
As many as 75.95 lakh businesses filed summary return form GSTR-3B for the month of February up to March 31, up from 73.48 lakh in the previous month.
The GST collection in March has been highest since the new indirect tax was introduced in July 2017 and also reflects a 15.6% growth over March 2018 collection of Rs 92,167 crore.
The monthly average of GST revenue during 2018-19 stood at Rs 98,114 crore, which is 9.2% higher than the previous fiscal. The government had lowered the GST collection target for 2018-19 fiscal to Rs 11.47 lakh crore in the revised estimates, from Rs 13.71 lakh crore budgeted initially.
“There is a seasonal peak which is seen in March as most accounts are closing. That is reflected in slightly higher numbers. There is likely to be a shortfall in GST collections for 2018-19. So, one can’t say at this point whether the GST is stabilising or not,” said D K Srivastava, chief policy advisor, EY.
Saloni Roy, senior director, Deloitte India, said, “The peak in GST collections at the year-end definitely signals a feel-good factor for the economic environment. With elections on the horizon and business sentiment slightly hazy, a hike in GST collections does send a positive signal to all. Consistent GST tax collection growth momentum is desirable as tax collections usually mirror the state of the economy.”
Devendra Kumar Pant, chief economist, India Ratings & Research, said, “March 2019 GST collections were highest since GST implementation. It was the fourth month in which collections exceeded Rs 1 lakh crore. More importantly, despite monthly fluctuations, the GST collections trend since August 2018 has been gradually increasing. On a monthly average basis, GST collections in FY19 grew 9.2%, lower than the nominal GDP growth of 11.5%. While GST is settling, on a quarterly basis, GST collections growth in fourth quarter of FY19 increased to 14.3% from 12.1% in the previous quarter.”