After missing the Rs 1-lakh crore target for three consecutive months since August this year, GST collection in November finally crossed the mark. The collection for the month stood at Rs 1,03,492 crore (8.5 per cent rise from October 2019) out of which CGST’s share was Rs 19,592 crore while SGST contributed Rs 27,144 crore, according to data released by the government.
Share of IGST was Rs 49,028 crore and that of cess was Rs 7,727 crore. IGST amount also included Rs 20,948 crore collected on imports while cess share also included Rs 869 crore collected on imports. Importantly, the November collection was the second-highest amount after Rs 1,13,865 crore collected in April 2019. .
The November collection is the eighth time that the amount has crossed Rs one lakh crore target since GST was introduced in July 2017. The government settled Rs 25,150 crore to CGST and Rs 17,431 crore to SGST from IGST as regular settlement. Central and state governments’ total revenue after settlement in November 2019 was Rs 44,742 crore for CGST and Rs 44,576 crore for the SGST, according to the Ministry of Finance.
The GST collection on domestic transactions saw a 12 per cent increase, the highest during the year. However, imports collection remained negative at -13 per cent. GST collection for November 2019 increased six per cent compared to November 2018 collection of Rs 97,637 crore. In October 2019 collections declined 5.29 per cent to Rs 95,380 crore over a year. Notably, the collection had increased by 3.76 per cent in comparison to September 2019, when it was Rs 91,916 crore. In September, the amount fell sharply to a 19-month low of Rs 91,916 crore.
The jump in the collection came amid the government taking a slew of measures in the last few months to boost growth even as the GDP growth has continued its downward spiral for the seventh consecutive quarter, falling to 4.5 per cent in the second quarter (July-September) of FY20, according to the official data. Similarly, the output of eight core infrastructure industries contracted 5.8 per cent in October.
Meanwhile, the Fifteenth Finance Commission Chairman N K Singh said that, GST has been an iconic taxation reform that will improve compliance in the country. “GST was a far-reaching iconic reform related to the share of resources between the central and state governments. It is indeed a radical tax reform,” Singh said at an event.
The government shifted to GST to improve the tax compliance across the country and create a large single market. GST was formed after the amalgamation of 17 various central and state levies, including excise duty, service tax, and value-added tax.