The falling GST revenue collections will be hard to contemplate for the finance minister in order to reduce down the fiscal deficit target of 3.3 percent this year.
With GST collection of August coming at INR 94,442 crores and slightly higher in the month of September, it is still away from the 1 trillion mark target which was earlier set by the government.
According to a tax expert statement, “This translates to month-on-month growth of 8% in Central GST, State GST, and Integrated GST for the next six months. It is unlikely that such a growth in momentum is possible in the near term.”
When we go through the direct tax collection, it is hovering
And in this, many of the tax experts anonymously said that they are been working on the revised revenue collection based on a monthly basis for an average of 1.15 trillion.
The average GST revenue collection stood at 90,000 crores per month for the first half of FY19 making a necessity of 1.19 trillion per month collection for the second half of the FY19.
Even if one looks at the direct tax collections of the country, it seems that 4.44 trillion is the collection made out by the government in the first half of FY19.
It seems that the government must cut the economic expenditures but still, this is not easy to do so. The upcoming festival season might give a surge to the GST revenue collections but consistency matters the most.
