New Delhi: Amid the ongoing economic slowdown, collections of the Goods and Services Tax have dropped to Rs 91,916 crore in September — a 19-month low. According to reports, this is the second straight month of a drop in GST collections.
In August, the tax collections stood at Rs 98,202.
“The total gross GST revenue collected in the month of September 2019 is Rs. 91,916 crore of which CGST is Rs. 16,630 crore, SGST is Rs. 22,598 crore, IGST is Rs. 45,069 crore (including Rs. 22,097 crore collected on imports) and cess is Rs. 7,620 crore (including Rs. 728 crore collected on imports),” the finance ministry said in a release.
The total number of GST returns filed for the month of August (up to September 30) stood at Rs. 75.94 lakh.
The government has settled Rs 21,131 crore to CGST and Rs 15,121 crore to SGST from IGST as regular settlement. The total revenue earned by the central government and the state governments after regular settlement in September was Rs 37,761 crore for CGST and Rs 37,719 crore for the SGST, the statement said.
GST, which came into force from July 1, 2017, combined 17 different central and state levies, including excise duty, service tax and VAT. It is a reflection of economic activity and a decline in collections indicated a downturn.
According to experts, the lower indirect tax collection is set to put further pressure on government finances. With the government already committed to scaling up public spending to boost the sagging economy, lower GST collection could change its fiscal maths. By lowering corporate tax it has already taken a big bet.
India’s GDP slowed to more than six-year low of 5 per cent in April-June, prompting the government to take an array of steps to boost the economy, including a steepest ever cut in corporate tax rate which would cost Rs 1.45 lakh crore.
During April-September, the GST collections totalled Rs 6.06 lakh crore. In comparison, tax collections in the same period of the previous fiscal were Rs 5.78 lakh crore.
(With agency inputs)