NEW DELHI: Research and rating firm, CARE Ratings, has projected the gross Goods and Services Tax (GST) collections in the range of Rs 12.60 to 13.40 lakh crore in the current financial year requiring an average monthly collection of Rs 1.05-1.12 lakh crore.
In its analysis of the indirect tax figures, the firm said that although the GST collections have been the highest in April, it has been lower than the monthly target estimated in the Budget for FY20.
“Going forward, the government in order to maintain its fiscal deficit target in FY20 will have to ensure the sustainability of GST collections given that the collections have been volatile since the implementation,” the agency said in its report on GST receipts.
The GST collections rose 10.05 percent to Rs 1,13,865 crore in April from a year ago period recording highest ever monthly revenue mop-up since the new indirect tax system was rolled out on July 1, 2017.
The monthly average of GST revenue during 2018-19 was Rs 98,114 crore, up 9.2 percent compared to the monthly average in the financial year 2017-18.
These figures indicate that the revenue growth has been picking up in recent months, despite various rate rationalization measures.
The revenue in April 2019 is 16.05 percent higher than the monthly average of GST revenue in FY 2018-19.