GST collections dip to Rs.93,960Cr in August

GST collections dip to Rs.93,960Cr in August
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New Delhi: The Finance Ministry on Saturday revealed that the total gross revenue collection towards the Goods and Services Tax (GST) GST for the month of August amounted to Rs. 93,960crore, down from Rs. 96,483 last month.

Out the total collection, Central GST (CGST) contributed Rs. 15,303 crore, while State GST (SGST) and Integrated GST (IGST) collection stood at Rs. 21,154 crore and Rs. 49,876 crore, respectively. The IGST collection included Rs. 26,512 collected on imports, while Cess accounted for Rs. 7,628 crore, including Rs. 849 crore collected on imports.

The aggregate number of GSTR 3B Returns filed for the month of July till August 31 was 67 lakh, which was marginally higher than 66 lakh returns for the month of June.

The Ministry of Finance in an official release stated that the leading factor behind falling tax revenues represented postponement of the sale of items for which tax rate was reduced by the GST Council, as the decision to reduce the tax rate was taken in the meeting held on July 21.

“Since it takes some time for the market to pass on the benefit of reduced taxes, consumers would have postponed their decision to buy expecting the benefit,” the release noted.

The combined revenue earned by the central and state governments after settlement, including provisional settlement of Rs. 12,000 crore in the month of August, was Rs. 36,963 crore for CGST and Rs. 41,136 crore for SGST. Also, compensation of Rs. 14,930 crore was released to the states for the bi-monthly period of June-July, 2018.

The Ministry also stated that the substantial impact of the reduction of tax rates would be observed only from next month onwards.