New Delhi- The collections from Goods and Services Tax (GST) grew by 11 per cent to about Rs 1.46 lakh crore in November on increased consumer spending and better compliance.
This is the ninth month in a row that the revenues have remained above the Rs 1.4 lakh crore mark. However, the collection in November was the lowest since August.
In October, GST collections had touched the second-highest level of Rs 1.52 lakh crore on festive spending.
The gross GST revenue collected in the month of November 2022 is Rs 1,45,867 crore of which Central GST is Rs 25,681 crore, State GST is Rs 32,651 crore, Integrated GST is Rs 77,103 crore (including Rs 38,635 crore collected on import of goods) and cess is Rs 10,433 crore (including Rs 817 crore collected on import of goods).
“The revenues for the month of November 2022 are 11 per cent higher than the GST revenues in the same month last year, which itself was Rs 1,31,526 crore,” the Finance Ministry said in a statement.
KPMG Partner Indirect Tax Abhishek Jain said continuing festive procurements, year-end reconciliations of input tax credits, credit notes, etc. would have played a significant role in the GST revenue uptick.
N.A. Shah Associates, Partner, Indirect Tax, Parag Mehta said the major factors for the increase in collections are the festive and wedding seasons.
“There has also been a major increase in sales for real estate and vehicle markets. Overall, there is substantial spending by consumers. Further, the authorities have been cracking down on tax evaders, defaulters, fake invoice instances etc,” Mehta said.
AMRG & Associates Senior Partner Rajat Mohan said GST collections for the month of October 2022 are encouraging and now it seems to be stabilizing around 1.5 lakh crores.
“October and November are festival months, which drove up purchases of goods and services, fueling GST numbers once again. In October, individuals splurged on real estate, automobiles, vacations, and other essential items,” Mohan said
During November, revenues from the import of goods were 20 per cent higher and the revenues from the domestic transactions (including import of services) are 8 per cent higher than the revenues from these sources during the same month last year.
TIOL Knowledge Foundation, Chairman Shailendra Kumar said a very good sign is the sustained growth in IGST collections from imports, including services. This will cushion future growth in the economy.
Revenues from GST touched a record of about Rs 1.68 lakh crore in April. In May, the collection was about Rs 1.41 lakh crore, June (Rs 1.45 lakh crore), July (Rs 1.49 lakh crore), August (Rs 1.44 lakh crore), September (Rs 1.48 lakh crore), October (Rs 1.52 lakh crore) and November (Rs 1.46 lakh crore).
Tax Connect Advisory Partner Vivek Jalan said the Budgeted GST Revenue for the Government of India for 2022-23 was Rs 7.8 lakh crores out of which Central GST was Rs 6.6 lakh crore and compensation cess was Rs 1.2 lakh crore. It means that the budgeted GST collection is Rs 14.4 lakh crore approx. Till the month of November, Rs 11.91 lakh crore has already been done.
“Hence even if one takes a conservative estimate of Rs 5 lakh crore in the next 4 months, then the fiscal year would end with an uptick of Rs 2.5 lakh crore approx which is a 17 per cent growth over budget,” Jalan added. (PTI)