Constantly stepping up the ladder, GST collections of the states and union territories have shown a considerable hike from Rs. 2.91 Lakh Crore in FY 2017-18 to Rs. 5.81 Lakh Crore in FY 2018-19 said Union Finance Minister Nirmala Sitharaman in Parliament. Further to this, the Finance Minister in a written statement responded to the questions of Lok Sabha saying that the Center Government released Rs 81,177 Crores compensation to the states during the Financial Year 2018-19, compensation released in FY 2017-18 was Rs. 48,178 Crores.
GST council is constantly putting efforts to create a solid structure of the System in the country. Some parameters are already achieved by GST governance. Stated by the Finance Minister, GST collections from states and UT are on a hike and the council assures 14% growth in the next five years through the compensation paid by the central government.
According to the Finance Minister, the resources behind the increasing GST revenue collection are e-way bill mechanism, automation of business processes, the introduction of the electronic invoice generation process, tax compliance verification and enforcement based on risk assessment.
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Goods and Services Tax (GST) introduced on July 1, 2017, was the result of merging 17 local taxes. It was for the first time in June 2019, the figures of GST collection were below borderline (Rs. 1 Lakh). The collection of Indirect Tax in June was Rs. 99,939 crore, in March was Rs 1,06,577 crore, in April was Rs 1,13,865 crore, and in May was Rs 1,00,289 crore.
35th GST Council meeting held last month, was the first Council meeting after BJP Sarkaar returned to the throne. GST council decided to continue the administration of the National Anti-Profiteering Authority for two years (till November 2021). The council granted permission to use Aadhaar (as proof) for GST Registrations. Lastly, the applicability of tax on electric vehicles will be discussed with the fitment committee.
