GST collections dip to Rs 83,346 crore in October
The Centre had promised the states that it will pay them for any loss in revenue due to GST roll out for next five years.
New Delhi: The GST collections in October fell to Rs 83,346 crore from over Rs 92,000 crore last month as the new tax system is being stabilised.
As per data available, the GST collections in the maiden month of July was over Rs 95,000 crore while in August, the figure was over Rs 91,000 crore. In September, it was over Rs 92,150 crore.
Moreover, the Centre had to pay a compensation of Rs 24,500 crore to states for their revenue short fall after the roll out of GST for July to October months.
The Centre had promised the states that it will pay them for any loss in revenue due to GST roll out for next five years.
A compensation of Rs 10,806 crore has been released to all the states for the months of July and August and a compensation of Rs 13,695 crores for the months of September and October is being released, the finance ministry said.
“The states revenues have thus been fully protected taking base year revenue as 2015-16 and providing for a projected revenue growth rate of 14 per cent,” it said.
The total collection till November 27 is Rs 83,346 crore for October and 50.1 lakh returns have been filed for the month, the ministry said.
Explaining the downward trend in tax revenue under GST, the ministry said initially Integrated GST was paid on transfer of goods from one state to another. “As and when the final transaction of these goods takes place, the credit for IGST is being utilised for payment of SGST and CGST and therefore, the inflow of new taxes is low,” it said.