States feared the adverse effects of the GST taxation in India, which is based on a new rule of ‘One-nation, one tax‘. The tax collected between August 2017 and June 2018 has been calculated to arrive at a monthly average and surprisingly the collection done in various States have shown a positive result. In totality, Rs 44,620 crore has been collected for 29 Indian states and three Union territories through GST as their monthly average. The results have been shown in terms of percentage shortfall. Though the GST collection is highest in Maharashtra, i.e. Rs 6,803 crore per month followed by Tamilnadu which has a collection of Rs 3,349 crore. Andhra Pradesh has the third rank and Telangana stands at the fourth. The smaller Indian states, Manipur, Mizoram, and Arunachal Pradesh are recorded with a surplus collection.
Earlier the States feared that they would lose Revenue due to the implementation of GST but now they have shown their happiness followed by the satisfaction. The GST department has experienced the lowest shortfall of 3% for the Bigger States. Tamil Nadu and Andhra Pradesh have the 3 percent of a shortfall, Telangana has 4 percent, and likewise. GST council has collaborated all the tax revenues of various States and ranked them according to the percentage shortfall. The Monthly average has been extracted out of the total tax collected between August 2017 and June 2018. Among the 29 Indian states and three Union territories Rs, 44,620 crores have been collected through GST. Manipur, Mizoram and Arunachal Pradesh, the smaller Indian States have collected surplus amount. The Officials of the State GST wing while talking to a newspaper told that the amount collected by the state ultimately goes to the state government exchequers.
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According to the GST law equal percentage of Tax on all the product and services is collected by the Centre and the State. The Tax charged on the intra-state trade goes to the Centre and the State gets the monetary benefits in terms of revenue at the same time. The Ratio for the IGST pool has been determined by the Finance committee, while the share could vary depending on the inter-state GST collection.
The States which fall short in achieving the Targets would be compensated by the Government for the first five years. The funds provided by the Centre would go to the state’s exchequer. So far as Tax evasion is concerned, the Intelligence wing of CGST in Telangana had detected and revealed an evasion of Rs 500 crore by infrastructure companies. Thus evident that tax evasion could not go very far in the current scenario.
