GST Mopup Edges Closer to Rs 1 Lakh Crore
In a FB post, Jaitley says once revenue stabilises Council will look into tax simplification and including more products
Goods and services tax (GST) collections rose further in June, raising the expectations of further rationalisation in the 28% slab as the mop-up moves closer to the ?1 lakh crore mark. India marked the first anniversary of GST on Sunday, with the government hailing one of the country’s most significant tax reforms since independence as a success.
Data released by the government showed GST collection in June at Rs 95,610 crore, higher than Rs 94,016 crore in May and well above the monthly average of Rs 89,885 crore in the last financial year.
“A steady and consistent increase in GST collections this financial year reflects the achievement of better tax compliance of GST,” said Abhis hek Jain, tax partner, EY India.Policymakers have repeatedly said that as GST revenues stabili se, the government will consider further rationalisation in rates.
“Key areas of future action will in clude further simplifying and ratio nalising the rate structure and bringing more products into the GST,” cabinet minster Arun Jaitley said in a Facebook post on Sunday. “I am confident that once revenue stabilises and the GST settles, the GST Council will look into these carefully and act judiciously.”The GST Council, the apex decision-making body for the tax, will meet next on July 21.
The government wants to keep just the so-called sin goods, such as cigarettes, in the top 28% bracket. Items such as paints and cement are still in the slab and there are demands they should be slotted in the 18% bracket.India’s June GST revenue indicated that the landmark indirect tax regime may be stabilising, said finance secretary Hasmukh Adhia, who is also revenue secretary.
“In May, GST collections stood at Rs 94,016 crore, in June it is Rs 95,610 crore… There is an increase between May and June… We hope we can take it to Rs 1 lakh crore,” Adhia said at an event to mark one year of GST. He added that Rs 1 lakh crore revenue collection in April was not the norm yet, but this could happen soon.
“The June collections indicate that revenues are now stabilising and inching close to the Rs 1 trillion mark,” said MS Mani, partner, Deloitte India, adding the government may now focus more on data mining to raise collections. “It is essential now to have more revenue buoyancy in order to move ahead with further rate rationalisation measures.”Out of the Rs 95,610 collected in June, central GST accounted for Rs 15,968 crore, state GST for Rs 22,021crore.
The Economic Times, New Delhi, 02nd July 2018