Govt struggles to meet GST collection target; indirect tax mop-up shortfall could be this much in FY19

A report by SBI research pointed out that due subdued GST mop-up and excise duty cut on petroleum products, indirect tax collections are likely to fall by Rs 90,000 crore in the current fiscal.

The government has been struggling to meet the Goods and Services Tax (GST) collection target, which along with the cut in excise duty on fuel may lead to a shortfall of Rs 90,000 crore, a report has said. The government has missed GST collection target in five of the six months of FY19 so far.

A report by SBI research pointed out that due subdued GST mop-up and excise duty cut on petroleum products, indirect tax collections are likely to fall by Rs 90,000 crore in the current fiscal.

“We expect a shortfall of around Rs 90,000 crore in GST and excise collections, out of which Rs 10,500 crore is on account of the reduction of excise duty on petroleum products by Rs 1.50 per litre,” SBI EcoWrap report said.

Total GST collection of the government comes at Rs 6.78 lakh crore against the budgeted estimate of Rs 7.44 lakh crore. If the SGST and IGST are excluded, the central government’s collection will come at Rs 3.46 lakh crore, just 47% of the budgeted estimated, SBI calculation showed.

On the contrary to indirect tax, direct tax collections are expected to cross the Budgeted target. The report said that for the second year in a row, the direct tax is expected to be higher than the budgeted target by around Rs 20,000 crore.

In the first six months of the year, the net direct tax collection surged 14% to Rs 4.44 lakh crore, government data showed.

source: https://www.financialexpress.com/economy/govt-struggles-to-meet-gst-collection-target-indirect-tax-mop-up-shortfall-could-be-rs-90000-crore-in-fy19/1390480/

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