CARE Ratings, the research and rating firm has estimated that the collection of the gross GST (Goods and Services Tax) for this FY will range between INR 12.60 lakh crore to INR 13.40 lakh crore for which the monthly collection must range between INR 1.05 to INR 1.12 lakh crore.
The firm analysed the indirect tax figures and said that even though the GST collection for the month of April is the highest but still it is considered less as compared to the monthly target which was estimated in the Budget for fiscal 2020.
On GST receipts, the agency said in its report “Going forward, the government, in order to maintain its fiscal deficit target in FY20, will have to ensure the sustainability of GST collections given that the collections have been volatile since the implementation”.
In the month of April in this fiscal year, there was a growth of 10.05 per cent i.e. INR 1,13,865 crore as compared to the last year and this growth is the highest after the introduction of the GST.
In the fiscal year 2018-19, there was about INR 98,114 crore of GST higher monthly basis i.e 9.2 percent of growth if compared with the monthly average in FY 2017-18.
Read Also: Higher Tax Collection Chances Reduced GST Rates: Government
The above-mentioned figure indicates that there is a year by year mop-up in the GST collection even after the rate rationalisation schemes.
As compared to the monthly average of the Fiscal year 2018-19, the GST collection in the month of April 2019 saw a growth of 16.05 per cent.
Source: https://www.business-standard.com
