The GST collections for the month of July showed a slight spike further cementing the effectiveness of the E-way Bill. GST accrues for the month stood at ₹ 96,483 crore. The Finance Ministry has attributed greater GST compliance for the increase in GST collections. Reportedly, 1.4 lakh more returns (referred to as GSTR 3B) were filed in July in comparison to those of June. The total GST Returns filed in July stood at 6.6 million.
The July collections do not consider with the latest relaxation in GST rates across a wide pool of consumer commodities. The new rates are effective only from last Friday. However, keeping in mind the negative impact GST rate reduction will have on GST Revenue, the Government is hopeful to make up for the shortfall on the back of increasing robust compliance especially from corporate as well as individual taxpayers.
The Government is all ready to accelerate tax compliances. Another major source of revenue generator would be petroleum products which are beyond the GST ambit though. However, the Government is hopeful that GST rate rationalization would pay rich dividends in the long run as it would accelerate consumer spending.
The GST Revenue data also states that the Centre has paid ₹ 3,899 crores to states as part of the GST Compensation agreement. The amount is for the state revenue shortfall during April-May.
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Also, the GST revenues have benefitted post the state-wide roll out of the e-way bill. The data reflects improvement in tax revenue post E-Way Bill implementation. Overall it has been the matter of rejoicing for the finance department.
While apart from GST collection, there are issues stuck with the implementation of GST e waybill in the states as the technological infrastructure is not supporting the major compliance required by the GST.
In the recent 28th GST council meeting, there was multiple rate reduction done on the white goods and on the widely anticipated sanitary napkins. While there are many amendments waiting to be cleared in the upcoming 29th GST council meeting.
