August GST Collection dips by 3% to Rs. 94 thousand Crore

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NewDelhi : The total gross GST revenue collected in the month of August has dipped by 2.6% to Rs. 93,960 crore from Rs.96,483 Crore in july. Of the Rs.93960 Crore, 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 31st August, 2018 is 67 lakh. This is slightly higher than 66 lakh returns of the month of June filed up to 31st July, 2018. The last date of filing return of July, 2018 in the State of Kerala was extended upto 5th October, 2018.

“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 in meeting held on 21st July while the notification of the reduced rate came into effect only from 27th July, 2018. 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 as the rate reduction would have got affected only in last few days of the month” the finance ministry said.

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. The chart shows trends in revenue during the current year.

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 in July

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