GST revenue collection for August 2018 is Rs 93,960 cr

Speed Post News Network

New Delhi : The total gross GST revenue collected in the month of August, 2018, is Rs 93,960 crore of which CGST is Rs 15,303 crore, SGST is Rs 21,154 crore, IGST is Rs 49,876 crore (including Rs. 26,512 crore collected on imports) and Cess is Rs 7,628 crore (including Rs 849 crore collected on imports).

The total number of GSTR 3B Returns filed for the month of July up to August 31, 2018, is 67 lakh. This is slightly higher than 66 lakh returns of the month of June filed up to July 31, 2018. The last date of filing return of July, 2018, in the State of Kerala was extended up to October 5, 2018.

The total revenue earned by Central Government and the State Governments after settlement including provisional settlement of Rs 12,000 crore in the month of August, 2018 is Rs 36,963 crore for CGST and Rs 41,136 crore for the SGST. For the bi-monthly period June-July, 2018, compensation of Rs 14,930 crore has been released to the States.

The revenues collected in August, 2018 of Rs 93,960 crore is slightly lower than July, 2018, collection of Rs 96,483 crore, and June, 2018 collection of Rs 95,610 crore. One of the main factors for the dip in tax revenues is probable postponement of sale of items for which tax rate was reduced by the Council as the decision to reduce the tax rate was taken at meeting held on July 21, 2018,  while the notification of the reduced rate came into effect only from July 27, 2018, according to a PIB release.

Since it would have taken 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 actual impact of reduction of rate of taxes would be observed only from next month onwards.

Even past trend of indirect tax collection shows that while July collections are 8.2% of the total annual collections, August collections are at a lower level of 7.7% of the total annual collections. This is another reason for lower collections during the month of August as compared to that of July.