Explained: GST collection surges in November, what it means

The Finance Ministry said that the recent trend of high GST revenues has been a result of various policy and administrative measures that have been taken in the past to improve compliance.Gross Goods and Services Tax (GST) revenue

collections in November (for sales in October) rose 25.3 per cent year-on-year to Rs 1,31,526 crore. This is the second highest revenue collection under GST ever since its rollout in July 2017, and has two specific triggers: a pickup in economic activity alongside multiple compliance measures and increased surveillance undertaken by the tax authorities. These compliance measures include auto-population of returns, blocking of e-way bills and passing of input tax credit for non-filers taken by tax authorities for curbing evasion. GST collections at Rs 1,41,384 crore in April this year, accounting for year-end sales, are the highest level so far in the indirect tax regime.

How much are the GST collections?

Gross GST revenue collected in November is Rs 1,31,526 crore, out of which CGST — the tax levied on intra state supplies of both goods and services by the Central Government — is Rs 23,978 crore, SGST — the tax levied on intra state supplies of both goods and services by the states — is Rs 31,127 crore, IGST — tax levied on all inter-state supplies of goods and services — is Rs 66,815 crore (including Rs 32,165 crore collected on import of goods) and cess is Rs 9,606 crore (including Rs 653 crore collected on import of goods).

The government has settled Rs 27,273 crore to CGST and Rs 22,655 crore to SGST from IGST as regular settlement. The total revenue of Centre and the states after regular settlements in the month of November 2021 is Rs 51,251 crore for CGST and Rs 53,782 crore for the SGST. Centre has also released Rs 17,000 crore to States/UTs towards GST compensation on November 3.

source:https://indianexpress.com/article/explained/november-gst-collection-surge-explained-7650750/

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