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At ₹15,109 crore, Punjab’s annual GST revenue highest in five years
The GST revenue, including state goods and services tax (SGST) and integrated goods and services tax (IGST), of ₹15,109 crore in the first 11 months (April 2021 to February 2022) of the financial year 2021-22 has already surpassed the previous highest collection of ₹13,568 crore in 2018-19, according to the indirect tax data compiled by the state taxation department
Chandigarh : Despite the coronavirus pandemic, Punjab has reported its highest goods and services tax (GST) collection since the inception of the new indirect tax regime five years ago, in the current financial year.
The GST revenue, including state goods and services tax (SGST) and integrated goods and services tax (IGST), of ₹15,109 crore in the first 11 months (April 2021 to February 2022) of the financial year 2021-22 has already surpassed the previous highest collection of ₹13,568 crore in 2018-19, according to the indirect tax data compiled by the state taxation department.
If the present growth continues, the state will end the year with the goods and services tax revenue of more than ₹16,200 crore.
37% year-on-year jump in collection
The April-February mop-up in the current fiscal is also 37% higher than ₹11,019 crore collected during the corresponding period of 2020-21. In the previous financial year, the state’s GST collection had dropped after coronavirus broke out and brought out business activities to a grinding halt for several months. The robust growth in GST collection in the current year that saw the second and third Covid waves is, however, being seen as a sign of strong economic rebound on the back of revival of demand across most sectors in the state.
Economic recovery, better enforcement
Taxation commissioner Nilkanth S Avhad attributed the growth in the GST revenue despite the pandemic situation to economic recovery, increased supervision and use of technology to ensure better compliance. “In addition to increased economic activity, the emphasis on anti-evasion measures, particularly better enforcement through on-road detention and data mining and plugging loopholes, are the primary reasons. We are also analysing the demand,” he said on being contacted. As part of their drive to check evasion, the department officials have detained 600 vehicles and imposed ₹13-crore fine every month on an average in the current financial year.
As per the latest figures, the revenue in February 2022 stood at ₹1,307.13 crore against ₹1,053.91 crore in the corresponding month of the previous fiscal, going up by 24%. However, the GST mo-up remains much lower than the protected revenue of ₹2,739 crore per month. At the time of switching to the GST, the Centre had guaranteed 14% year-on-year growth over the 2015-16-base and the state was to be compensated for any shortfall. The new indirect tax regime was implemented from July 1, 2017.
Dip in VAT, CST due to rate cut
On the other hand, the value-added tax (VAT) collection from petroleum products, which have not been brought under the reformed taxation regime, has seen a dip of 25% in February, diving to ₹415.15 crore from ₹553.51 crore in the corresponding month of 2020-21. The drop in collection is a result of the cut in VAT announced by the Congress government last November. The state government had lowered the VAT on petrol and diesel to make them cheaper by ₹10 per litre and ₹5 litre.
The overall VAT revenue of ₹7,019 crore from April 2021 to March 2022 is, however, still 29.21% more than the previous year when the total collection stood at ₹5,432 crore. The year-on-year surge in VAT revenue was driven by rising fuel prices. Diesel and petrol account for 90% of the value-added tax in government kitty and the remaining 10% comes from aviation turbine fuel, and liquor. The central sales tax has also fallen by 19% in February this year, going down to ₹15.26 crore from ₹18.86 crore during the same month of previous fiscal.
