GST Collection Hikes 8% in Feb 2020 But Lacks Targets

February’s Goods and Service Tax contribution to the national treasury stood at Rs. 1.05 lakh crore which is still less than the targets pre-assumed by the government. Though the GST collection was not up to the targets of the government (i.e. Rs. 1.15 lakh crore for Feb month), it was able to gross 8% more than the last year’s February collection.

It is for the fourth consecutive month that the Goods and Service Tax collection has grossed over Rs. 1 lakh crore, revenue department declared on Sunday, from the grand accumulation of the GST for Feb month, i.e.v Rs. 1.05,366 lakh crore, the part of Central GST was Rs 20,569 crore, State GST was Rs 27,348 crore and Integrated GST was Rs 48,503 crore including Rs 20,745 crore that was accumulated on imports. The cess collected was Rs 8,947 crore, including Rs 1,040 crore on imports.

From the starting of January to February 29, 8.3 million taxpayers have successfully filed GSTR 3B Get to know details on GST return 3B form along with the online procedure for filing return of the current FY 2018-19. We break down the form for easy understanding said the revenue department. The target collection was set to Rs. 1.1 lakh crore per month until in January the revenue department amended the collection targets for February (Rs. 1,15 lakh crore) and March (Rs. 1.25 lakh crore).

The Central Board of Indirect Taxes and Customs (CBIC) is constantly reminding the local authorities to unearth the cases of ITC frauds and curb them to the verge of extinction so that the collections are hiked up to the expectations of the government. The local GST formations are ordered to identify the unscrupulous businesses that are still applying the tactics of false invoices or e-way bills to claim more ITC than actually receivable. Currently, the department has issued notices to various companies commanding them to reverse the ITC wrongly claimed by them.

Tax authorities have the data analysis on the basis of which they are ordered to check whether there is any mismatch in the supply and purchase invoice, mismatch in GST return filing Over the past months, many businesses in the country have received GST notices. There are around 34% mismatches or less GST payment, concluding the deficit, excess refunds availed, over-invoicing, wrong ITC claimed, and so on. Country’s revenue collection marking Rs. 1 lakh crore per month is a bonus for the economy and that now it is expected to re-stabilize shortly in the coming period.

“The GST collections continuing at above the Rs 1 lakh mark is quite an encouraging situation for the Indian economy,” said Abhishek Jain, tax partner at EY. One of the prominent reasons for the hike in collections is differential liabilities discharged by businesses in reference to the observations in GST annual returns and audit for 2017-18; which was due in January 2020,” he said.

The figures of recent GST collection clearly depict that the economy is stepping towards stability and due to the amendments in the e-invoice mechanism and new return policies the graph is expected to show even more growth. Now the tax authorities are all expected to roll up their sleeves for the March collections so that the difference between the set target and actual collection is reduced.

Revenue Department declared that the government settled Rs 22,586 crore to CGST and Rs 16,553 crore to SGST from IGST Get the brief introduction of SGST, IGST and CGST. We have mentioned their full forms, meanings and adjustments of input tax credit under GST in India as regular settlement. The total earned by the centre and states after the regular settlement is Rs 43,155 crore and Rs 43,901 crore, respectively.

The GST collection for February hiked up by 12% from domestic transactions. Talking about GST collection from import of goods the figures raised by 8% while GST collection on import of goods declined by 2%.