New Delhi: Goods and Services Tax (GST) collections in March came in at a record Rs 1.06 lakh crore, but not enough to meet the government’s target for the fiscal year ended March 31, official data showed. The Centre, which had upwardly revised fiscal deficit target to accommodate the cash-dole-out plan to farmers, was banking on its share of estimated GST collections of Rs 5.03 lakh crore out of about Rs 11.47 lakh crore in total mop-up for 2018-19.
But, the final numbers showed gross central GST coming in at Rs 4.25 lakh crore, about Rs 78,000 crore short of what the Centre was targeting. GST, which was rolled out from July 1, 2017, subsumed 17 central and state levies and collections thereof are divided into three broad heads – central GST (which accrues to the Union Government), state GST (which goes to states) and integrated GST (that is divided equally between the centre and the state).
Official sources said estimated Rs 5.03 lakh crore share of the Centre in the GST proceeds was after distributing states’ share out of I-GST. The actual collection of Rs 4.25 lakh crore is after settling IGST. GST revenues were critical for the Central government to meet its revised fiscal deficit target of 3.4 per cent for 2018-19 and a shortfall in indirect taxes, if not compensated from higher revenues from other sources, would lead to the target not being met.
While GST collections have been gradually increasing since August, they came in at a record high of Rs 1.06 lakh crore in March, up from Rs 97,247 crore in the previous month, as compliance improved amid an increased number of returns filed, an official statement said. March witnessed the highest ever monthly return filing since GST rollout on July 1, 2017.