GST collection rises Rs 1 trillion in July

According to the records, the collection from the GST stood above Rs 1 trillion in July, mainly on account of higher mop-up under the integrated GST. However, CGST and SGST remained subdued, posing a challenge for the revenue target for the financial year.

GST collection at Rs 1.02 trillion in the month was slightly more than 2% higher than the Rs 99,939 crore in June and 5.8% higher than the Rs 96,483 crore in July last year. Meanwhile, CGST collection was just Rs 17,912 crore in July, down from Rs 18,366 crore in June.

Similarly, SGST collection was also lower at Rs 25,008 crore in the month against Rs 25,343 crore in June. The CGST collection target was revised downwards to Rs 5.26 trillion for the fiscal year from the Rs 6.1 trillion estimated in the Interim Budget, following a 9% shortfall in collection in the previous year.

“GST collection for the month, despite being more than Rs 1 trillion, would be a matter of concern because this is lower than the Budget estimate. Collection needs to be correlated to the economic situation,” said M S Mani, senior director, Deloitte India.

Abhishek Jain, tax partner, EY, said, “The next uptick in collection is expected with the launch of the new return formats and related restricted credit availability only on the matching of it with corresponding disclosures by suppliers, and verification of annual returns/audit reports submitted for FY17-18, etc.”