The Government is still modifying the architecture of GST collection to make it an ideal tax collection system. New reforms and amendments are frequently been introduced in the system so that the ultimatum can be achieved. GST collection for the month of September was yet another challenge faced by the governance which slipped down from expected Rs. 1 Lakh Crore to Rs. 91,916 Crore. The collection recorded for September month is considered to be the lowest in nineteen months.
The revenue graph for September 2019 declined by 2.67% against the revenue during September 2018 while it has shown a negative growth of GST on imports and the total collection has grown by less than expected 4.90%.
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As per the official analysis, GST collection for the month of September that was total Rs. 91,916 crore constitutes Rs. 16,630 Crores of Central GST, Rs 22,598 crore of State GST, Rs 45,069 crore of Integrated GST (IGST) and Cess is Rs 7,620 crore.
September month’s total collection gave disheartening figures to the government as it required the minimum collection of Rs. 1 Lakh Crore in order to meet its fiscal targets and to escape compensating states for losses. Valid for the first five years of GST implementation, the Central government is liable to provide compensation is every two months to the states for the losses they counter.
The central government has already extended the compensation of Rs 27,955 crore to the states in June-July this year and Rs 17,789 crore in April-May. While the government is putting efforts to ascend public spending so that there is a little elevation in the current depressed economy, lower GST collection could change its fiscal figures. Corporate tax reduction is going to is already in action to turn the scenario for the government.
