From April to May, GST collection fell by 12% in a month
Goods and Services Tax (GST) collection in May 2019 dropped by about 12% to ₹1,00,289 crore compared to ₹1,13,865 crore in the previous month, according to an official statement.
Although the GST collection figure crossed the ₹1 lakh crore mark for three consecutive months, the gross collection in May was also lower compared to ₹1,06,577 crore collected in March this year.
The finance ministry statement said GST collection in May saw a growth of 6.67% compared to ₹94,016 crore in the same month the previous year. “The revenue in May 2019 is 2.21% higher than the monthly average of GST revenue in FY 2018-19 ( ₹98,114 crore),” it said.
The revenue collection dropped despite an increase in the total number of tax returns filed.
“Though the GST collections in May 2019 exceeded ₹1 lakh crore, yet it is lower than revenue collected in April 2019. It is noteworthy that 72.45 lakhs GSTR-3B returns were filed in May, which is slightly higher than 72.13 lakh returns filed in April. Despite the increase in number of returns filed, there is a decline in the revenue figures in May.
“This could be the result of additional taxes paid by the taxpayers in April for the differences found in the reconciliation done for FY 2018-19,” said Vishal Raheja, DGM, Taxmann.
MS Mani, partner, Deloitte India, said, “The trend in collections indicates revenue stabilisation. However, since this is short of the target, more focus on compliance and anti-evasion can be expected by businesses.”
According to the statement, out of the gross GST revenue collected in May 2019, the share of central GST (CGST) is ₹17,811 crore, state GST (SGST) ₹24,462 crore and integrated GST (IGST) ₹49,891 crore (including ₹24,875 crore collected on imports). The collection through cess is ₹8,125 crore (including ₹953 crore collected on imports).
“The government has settled ?18,098 crore to CGST and ?14,438 crore to SGST from IGST as regular settlement. The total revenue earned by Central Government and the State Governments after regular settlement in the month of May, 2019 is ₹35,909 crore for CGST and ₹38,900 crore for the SGST,” it said.