In the month of October 2018, approximately Rs 32,000 crore present in Integrated Goods and Services Tax (IGST) pool is distributed among the centre and states.
Over 15,000 crore will be the part of the state, said the official. For October, the distribution will be included in GST of both the centre and states. On November 1, 2018, the amount of the entire revenue collection will be released.
IGST funds have been partitioned for the fifth time between centre and states. This year, approximately Rs 29,000 crore was paid in September, Rs 12,000 crore in August, Rs 50,000 crore in June and Rs 35,000 crore in February.
The official said that the amount is partitioned between the centre and states so that it does lie purposeless with the centre if the fundamental amount is given to IGST pool adding Rs 32,000 crore has been divided this month.
The tax was charged on the utilization of goods or providing services is divided 50:50 between the centre and state under GST and such tax is known as central GST (CGST) and state GST (SGST).
An IGST is charged on inter-state movement of goods and imports, which is given to the centre. A cess is charged on luxury goods which are made for the payment pool of funds to make good of revenue deficiency by states on the execution of GST.
For the payment of CGST and SGST, the amount preferably should be ‘nil’ balance in IGST pool.
There are some businesses which are not eligible to claim ease of ITC, so the balance gets collected in the IGST pool.
For this financial year, the monthly GST collection must be Rs 1 lakh crore said the finance minister, but the genuine collection has fallen down every month after month. The month of April was the only exception in which figures were more than Rs 1 lakh crore.
In May, the collection was Rs 94,016 crore, Rs 95,610 crore in June, Rs 96,483 crore in July, Rs 93,960 crore in August and Rs 94,442 crore in September.
