According to the tax official, it is expected that the GST Council may reduce the taxes on items of common consumption if the government will earn good collection from the new tax regime over the coming few months. An official further added that, the first month revenue collection under the Goods and Services Tax (GST) Regime has been higher than the expected and if the revenue trend enhances until December, then there would be a chances of reduction of tax rates.
Official who did not want to disclose its name said that, the tax rates reduction can be done either in reduction of common consumption items or by reducing the tax slab rate under the Goods and Services Tax Regime. Ultimately, consumers will be benefited with this.
India’s common unified tax reform GST, earned revenue collection of Rs 92,283 crore in first month (July) returns, from 64.42 per cent taxpayer assesses.
Collectively figures collection the government earned, Rs 14,894 crore come in the form of Central GST (CGST), Rs 22,722 crore in the form of State GST ) SGST, Rs 47,469 crore in the form of Integrated GST (IGST) and Rs 7,198 crore in the form of compensation cess imposed on demerit and luxury goods.
The unified Goods and Services Tax Regime (GST) was implemented from 1st July across India, subsuming several levied by the Central and State Government such as excise, service and VAT. It is expected that the revenue collections are likely to increase when all the taxpayer filed their returns.
The July month returns collection were higher than the finance ministry internal expectations of 91,000 crore. Till now, 38.38 lakh taxpayers, estimating 64.42 per cent total taxpayers who had registered in July month, filed their first month returns.