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<keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword>'s gross <keyword id="6354679" type="COMPANY" weightage="20" keywordseo="gst">GST</keyword> revenue collection reached a new record high of over ₹1.23 <keyword id="4049201" type="PERSON" weightage="20" keywordseo="lakh-crore">lakh crore</keyword> in March 2021. The GST <keyword id="6398283" type="UNKNOWN" weightage="20" keywordseo="revenues">revenues</keyword> during March 2021 are the highest since the introduction of the tax. "In line with the trend of recovery in the GST revenues over past five months, the revenues for the month of March 2021 are 27 per cent higher than the GST revenues in the same month last year," the <keyword id="47209" type="COMPANY" weightage="20" keywordseo="Finance-Ministry">Finance Ministry</keyword> said in a statement. "During the month, revenues from import of goods were 70 per cent higher and the revenues from domestic transaction (including import of services) are 17 per cent higher than the revenues from these sources during the same month last year." According to the statement, the gross GST revenue collected in the month of March 2021 is at a record high of ₹123,902 crore of which <keyword id="6373817" type="COMPANY" weightage="20" keywordseo="cgst">CGST</keyword> is ₹22,973 crore, SGST is ₹29,329 crore, <keyword id="6360947" type="COMPANY" weightage="20" keywordseo="IGST">IGST</keyword> is ₹62,842 crore and cess is at ₹8,757 crore. "The government has settled ₹21,879 crore to CGST and ₹17,230 crore to SGST from IGST as regular settlement. In addition, Centre has also settled ₹28,000 crore as IGST ad-hoc settlement in the ratio of 50:50 between Centre and States or UTs." "The total revenue of Centre and the states after regular and ad-hoc settlements in the month of March 2021 is ₹58,852 crore for CGST and ₹60,559 crore for the SGST. Centre has also released a compensation of ₹30,000 crore during the month of March 2021." ICRA Principal Economist <keyword id="473448" type="PERSON" weightage="20" keywordseo="Aditi-Nayar">Aditi Nayar</keyword> said: "The healthy GST collections in the month of March 2021, along with the additional devolution of ₹45,000 crore to the state governments for the just-concluded fiscal, confirm our view that the tax revenues in FY2021 have exceeded the 'RE'." "As a result, we continue to expect the GoI's fiscal deficit to undershoot the FY2021RE of ₹18.5 trillion, suggesting ample cash balances at the start of FY2022." Abhishek Jain, Tax Partner, EY India, said: "The all-time high record GST collections of 1.23 lakh crore and it being 27 per cent higher than last year is a significant uptick." "It clearly shows a sustained economic recovery and also is a result of GST audit closures and the Government tightening compliance and anti-evasion measures." SEE ALSO: <a href="https://www.businessinsider.in/finance/news/upi-crosses-5-lakh-crore-in-transaction-value-in-march/articleshow/81820799.cms">India’s digital payments soar – UPI crosses ₹5 lakh crore in transaction value in March</a> <a href="https://www.businessinsider.in/india/news/west-bengal-is-the-highest-contributor-to-small-savings-schemes/articleshow/81825902.cms">West Bengal is the highest contributor to small savings schemes – with elections underway, it could have been a trigger for the government to roll back interest rate cuts</a> <a href="https://www.businessinsider.in/business/startups/news/revolut-india-plan-starts-with-a-25-million-investment-and-possibly-a-fintech-acquisition/articleshow/81833983.cms">Revolut’s India plan starts with a $25 million investment and possibly, a fintech acquisition</a>

India's GST revenue collection reaches new high of over ₹1.23 crore in March

Introduction of the <keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword> system is expected to have a macro economic impact and will set a new course for cooperative federalism by strengthening Centre-state partnership, the <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> said in a report released here on Friday. According to the <keyword id="6354335" type="CITY" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (RBI) report entitled 'State Finances: A Study of Budgets of 2016-17', the Goods and <keyword id="645517" type="COMPANY" weightage="20" keywordseo="services-tax">Services Tax</keyword> (GST) introduction is expected to have significant macro economic implications in terms of growth, inflation, export competitiveness and fiscal balance in the years ahead. "The successful implementation of GST will result in additional revenue through simpler and easier tax administration, supported by robust and user-friendly IT (information technology) systems," the study said. It said the GST is expected to reduce administrative costs for collection of tax revenue and improve revenue efficiency while uniformity in tax rates and procedures will lead to economy in compliance cost. The GST regime will also increase the shareable pool of resources, resulting in transfer of large funds to the states for developmental works. "Such an outcome will ensure debt sustainability of states in the long term. In fact, the GST is likely to set a new course for cooperative federalism in India by strengthening Centre-state partnership," the study said. According to the RBI study, most of the central cesses will be subsumed into the GST and in turn increase the divisible pool of resources which is to the advantage of states. "Introduction of a new cess on luxury and demerit goods may be contrary to the GST spirit but the proceeds will be used to compensate the states; thus, the overall impact of GST will be beneficial," the study said. The study said that from the point of view of implementation, it could be argued that the GST is imposed on consumption while cess, which is typically applied at the stage of manufacturing, may be difficult to administer and could also lead to cascading effects. On the status of state's finances, the study said that increasing reliance on market borrowing, along with enabling conditions for additional borrowing by states, poses challenges for the sustainability of state finances as higher state borrowings raise yields and cost of borrowing. Due to prevailing uncertainty about the revenue outcome from the GST implementation, the outlook for revenue receipts of states could turn uncertain, the study said. "There is, however, the cushion of compensation by the Centre for any loss of revenue for initial five years. In this context, the GST remains the best bet for states in clawing back to the path of fiscal consolidation over the medium term," the study said.

GST to have macro economic impact: RBI

India;s <keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword> Collections under the new indirect tax regime came in at Rs 90,669 crore for August, above the market estimate of Rs 80,000-85,000 crore but lower than the Rs 94,063 crore collected last month. Of the total revenue collected for August, Rs 21,067 crore came from <keyword id="6373967" type="ORGANIZATION" weightage="20" keywordseo="sgst">SGST</keyword>, Rs 14,402 came from <keyword id="6373817" type="ORGANIZATION" weightage="20" keywordseo="cgst">CGST</keyword> and Rs 7,823 crore from GST compensation cess. IGST, which is imposed on inter-state movement of goods and imports, accounted for Rs 47,377 crore of the total GST collection.In a statement following the release of collections data, the government said that a number of assessees have not filed GST returns for both July and August, and also said that GST collections would be higher as and when compliance increases.Compliance for the month stood at 55 percent, down from around 65 percent last month.For August, only 37.6 lakh taxpayers out of a total 68.2 lakh registered taxpayers filed their GST. Last month, finance minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> had said that India’s GST collections of Rs 92,283 crore for July was above the government’s tax collection target for the month. The tax mobilisation for July stood at 64.4 per cent of the 59.57 lakh taxpayers registered with the new Goods and <keyword id="645517" type="COMPANY" weightage="20" keywordseo="services-tax">Services Tax</keyword> (GST).

India's GST revenue collection for August slows to Rs 90,669 crore

<ul><li>The Goods and Services (GST) collection for October crossed ₹1 trillion with 6.7 million businesses filed their GST returns in FY18. </li><li>The government expects the tax collections to continue rising in the coming months with the onset of the festive season. </li><li>The southern state of Kerala, in particular, exhibited an extraordinary growth of 44% in GST collection followed by the states of Jharkhand, Rajasthan, Uttarakhand and Maharashtra. </li><li>The Indian <keyword id="6355261" type="UNKNOWN" weightage="20" keywordseo="finance-minister">Finance Minister</keyword>, <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword>, attributes the success of GST to lower rates, higher compliance, having only one tax and negligible interference by taxation authorities. </li></ul>India’s biggest indirect tax reform with the implementation of the <keyword id="6359833" type="UNKNOWN" weightage="20" keywordseo="Goods-and-services-tax">Goods and Services Tax</keyword> (GST) only recently completed its first year, and come October, its <a href="https://economictimes.indiatimes.com/news/economy/finance/gst-collections-cross-the-1-lakh-crore-mark-in-october/articleshow/66457681.cms">collections have crossed ₹1 trillion</a>. While the success of the tax is often debated, October’s collections are a 6.6% higher than that of August. India’s Finance Minister, Arun Jaitley, attributes the success of the tax to reduced incidences of tax evasion and a higher degree of compliance. 
 
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 In fact, in October, ₹6.7 million businesses filed their GST returns. The ₹1 trillion threshold was initially breached in April, after which collections have consistently been above ₹900 billion but never quite reaching that mark again. The Indian government expects that this time around tax collections will increase further with the festive season just around the corner. Aside from Diwali, Christmas and New Year’s, it’s also wedding season when consumer demand typically increases. The Ministry of Finance also added that the revenue in October pertains to the sales activities for the month of September. In the coming months, the government is hopeful that the increase in demand for consumption will lead to a rise in revenue at an even faster rate. So much so that it’s confident about meeting the <a href="https://www.livemint.com/Companies/209TWMGXqbauGBcvFmiv6K/GST-collection-rises-in-September-still-short-of-Rs-1-trill.html">fiscal deficit of 3.3%</a> of its <keyword id="6354971" type="DEFINITION" weightage="20" keywordseo="gross-domestic-product">Gross Domestic Product</keyword> (GDP). State by state Kerala tops the list of ‘extraordinary growth’ with respect to its GST collection with a 44% contribution to total tax deposits across India. The southern state was followed by Jharkhand, Rajasthan, Uttarakhand and Maharashtra contributing 20%, 14%, 13% and 11% to the total tax collection, respectively. The<a href="https://economictimes.indiatimes.com/news/economy/finance/gst-collections-cross-the-1-lakh-crore-mark-in-october/articleshow/66457681.cms"> total gross GST</a> revenue collection in October constitutes Central GST of ₹164.64 billion, state GST of ₹228.26 billion, IGST of ₹534.19 billion and cess amounting to ₹80 billion . While the tax regime has yielded positive results for a select few states — Mizoram, Arunachal, Manipur, Nagaland, Sikkim and Andhra Pradesh — others have faced a<a href="https://indianexpress.com/article/business/economy/gst-collections-cross-in-october-5429010/"> shortfall in revenue</a> ranging from a mere 3% to a whopping 42% in states like Punjab and Himachal Pradesh. The GST system in India may have avoided inflation from setting in and widened the tax base, but basic obstacles like registration and compliance are still in play.

India’s biggest tax reform hits ₹1 trillion in October, expects collections to rise with the festive season rolling in

India's gross <keyword id="6354679" type="DEFINITION" weightage="20" keywordseo="gst">GST</keyword> revenue collection fell below the psychological mark of Rs 1 lakh crore for the first time this year, clocking Rs 92,849 crore in June 2021, as collections fell due to disruptions caused by the fresh wave of Covid-19. Though the GST revenues during June 2021 are lower than the over Rs 1 lakh crore collections recorded in the previous month and a record Rs 1.41 lakh crore collection made in April, it is still a growth over June 2020 collections when GST numbers had remained low due to the first set of lockdowns. Most tax experts had feared that the real impact of the pandemic and lockdowns in different parts of the country would pull down GST revenues significantly in May and then in June. "The revenues for the month of June 2021 are 2 per cent higher than the GST revenues in the same month last year", a <keyword id="47209" type="ORGANIZATION" weightage="20" keywordseo="Finance-Ministry">finance ministry</keyword> statement said. According to the statement, the gross GST revenue collected in the month of June is Rs 92,849 crore of which CGST is Rs 16,424 crore, SGST is Rs 20,397, <keyword id="6360947" type="UNKNOWN" weightage="20" keywordseo="IGST">IGST</keyword> is Rs 49,079 crore (including Rs 25,762 crore collected on import of goods) and Cess is Rs 6,949 crore (including Rs 809 crore collected on import of goods). The June numbers include <keyword id="4943720" type="PERSON" weightage="20" keywordseo="gst-collection">GST collection</keyword> from domestic transactions between 5th June to 5th July 2021 since taxpayers were given various relief measures in the form of waiver or reduction in interest on delayed return filing for 15 days for the return filing month June '21 for the taxpayers with the aggregate turnover upto Rs 5 crore in the wake of the second wave. During this month the government has settled Rs 19,286 crore to CGST and Rs 16,939 crore to SGST from IGST as regular settlement, the statement said. With June collections staying close to below the Rs 1 lakh crore mark, it would be the first month after a gap of eight months in a row when GST revenues had remained above the threshold. The collection is surprising as most of the States have been under strict lockdown due to the pandemic. The GST collection for June, 2021 is related to the business transactions made during May, 2021. During May, 2021, most of the States/UTs were under either complete or partial lockdown due to Covid. A finance ministry statement said that the e-way bill data for the month of May 2021 shows that during the month, 3.99 crore e-way bills were generated as compared to 5.88 crore in the month of April 2021, down by more than 30 per cent. However, with reduction in caseload and easing of lockdowns, the e-way bills generated during June 2021 are 5.5 crore which indicates recovery of trade and business. The daily average generation of e-way bills for the first two weeks of April 2021 was 20 lakh, which came down to 16 lakh in the last week of April 2021 and further to 12 lakh in the two weeks between 9th to 22nd May. Thereafter, the ministry said, the average generation of e-way bills has been increasing and has again reached the 20 lakh level since the week beginning 20th June. Therefore, it is expected that while the GST revenues have dipped during the month of June, the revenues will see an increase again from July 2021 onwards, the finance ministry said. "While the collections are lower than Rs 1 Trillion, which had become the norm for the past few months, considering the fact that it relates to transactions in May 2021 which was badly impacted by the pandemic, it would be considered as a very satisfactory collection. These numbers also reflect the economic resilience shown during the recent pandemic phase," said MS Mani, Senior Director, <keyword id="6356108" type="ORGANIZATION" weightage="20" keywordseo="deloitte-india">Deloitte India</keyword>. SEE ALSO- <a href="https://www.businessinsider.in/business/startups/news/payments-firm-pine-labs-raises-600-million-as-it-plans-to-go-public-by-2022/articleshow/84162996.cms" data-type="tilCustomLink">Payments firm Pine Labs raises $600 million as it plans to go public by 2022</a> <a href="https://www.businessinsider.in/personal-finance/news/what-happens-if-you-forget-to-claim-your-fixed-deposit-proceeds-after-maturity-explained/articleshow/84161710.cms" data-type="tilCustomLink">What happens if you forget to claim your fixed deposit proceeds after maturity? Explained</a>

India's GST revenue falls below ₹1 lakh crore for the first time this year

New Delhi, Jan 5 () States might be facing a consolidated revenue gap of up to Rs 1.23 lakh crore on account of withdrawal of compensation after the five-year GST transition period ends on June 30, 2022, says a report by economic think tank NIPFP.
 At the time of implementation of the Goods and Services Tax (GST) on July 1, 2017, the Centre had promised to compensate states for loss of revenue for five years at an agreed formula.
 "If the GST compensation is withdrawn after June 30, 2022, consolidated revenue gap of states would vary between Rs 1,00,700 crore to Rs 1,23,646 crore depending on expected tax buoyancy and reliability of data sources," the report said.
 "This implies that states will need to either generate an equivalent amount of revenue from exiting sources to continue with committed expenditures and/or cut down expenditures to cope up with revenue shock in 2022-23," it added.
 Due to the ongoing shortfall in overall GST collection as well as rising revenue gap between GST compensation requirement and GST compensation cess (GSTCC) mobilisation, timely release of GST compensation has become a matter of contention between the union and state governments.
 The report said that the withdrawal of GST compensation and fall in overall State Goods and Services Tax (SGST) collection will have substantial impact on state finances of Punjab, Odisha, Goa, Chhattisgarh and Karnataka, among major states.
 Among minor states, substantial revenue gap is expected for Himachal Pradesh, Uttarakhand, Tripura and Meghalaya.
 Given the ongoing shortfall in GST collection and uncertainty associated with revenue on account of SGST collection, many states have approached the 15th Finance Commission for possible extension of the GST compensation period by another three years, i.e. up to 2024-25.
 "Any shock to state finances due to withdrawal of GST compensation after the GST transition period may have profound impact on India's fiscal management and thereforemacroeconomic stability," the report noted.
 It pointed out that even if the GST compensation period is extended beyond June 30, 2022, the Centre may not have adequate fiscal space to provide GST compensation to states at the ongoing annual growth rate of 14 per cent, unless either tax buoyancy and/or nominal growth rate of GDP improves.
 To provide GST compensation to states, GST Compensation Cess (GSTCC) was introduced along with GST on some specific items to mobilise resources for the GST Compensation Fund.
 The union government manages the fund. BKS MKJ

States stare at over Rs 1 lakh cr revenue gap post withdrawal of GST compensation

<ul><li>Rs 1 trillion collected from <keyword id="6354679" type="DEFINITION" weightage="20" keywordseo="gst">GST</keyword> in April. </li><li>Compliance rate soars up to 69.5%. </li><li>New schemes against tax evaders being reviewed like the e-way bill.</li></ul>For the first time since the rollout of the new tax regime in July 2017, the <keyword id="6359833" type="UNKNOWN" weightage="20" keywordseo="Goods-and-services-tax">Goods and Services Tax</keyword> (GST) collection crossed ₹1 trillion in the month of April. Of the total <a href="https://www.livemint.com/Politics/6VE7QlPV6PlQyZAoOH8PnO/GST-collections-cross-Rs1-trillion-in-April-the-first-time.html" data-type="tilCustomLink">revenue</a> of ₹1.03 trillion collected in April, ₹186.52 billion was GST collected by the centre, ₹257.04 billion was state collected GST and ₹505.48 billion was integrated GST according to the statement by the finance ministry. In addition to that, the cess was ₹85.54 billion including ₹7.02 billion from imports. As per the <keyword id="6355261" type="UNKNOWN" weightage="20" keywordseo="finance-minister">finance minister</keyword>, the resilience in tax collection could be associated with economic recovery and improvement in compliances. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 GST revenue buoyancy is expected to improve during the upcoming months after the electronic tracking of goods movement shows results after its implementation on 1 April 2018. This is expected to be a barrier for tax evaders that keep transactions completely off their books or under-report their profit turnovers. With the introduction of schemes such as invoice matching with new improved tax return forms, revenue charge mechanism (a mechanism in which large registered dealers have to pay tax for purchases from small unregistered vendors) and the requirement for some taxpayers to withhold tax while making payments, it is expected to improve the tax anti-evasion architecture. Finance minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> tweeted, “With the improved economic climate, the introduction of the e-way bill and improved GST compliance, GST collections would continue to show positive trend”. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 Compliance to these schemes remains a challenge till date with only around two-thirds of the taxpayers filling in tax returns on time. They have to use a <keyword id="4673477" type="ORGANIZATION" weightage="20" keywordseo="GSTR">GSTR</keyword> 3B form, introduced along with the GST in July 2017, which must be filed by everyone who has registered for GST. According to a <a href="https://www.livemint.com/Politics/6VE7QlPV6PlQyZAoOH8PnO/GST-collections-cross-Rs1-trillion-in-April-the-first-time.html">report</a>, the total number of GSTR 3B filed for March up to 10 April 2018 was ₹6.047 million against ₹8.172 million eligible taxpayers, with the compliance rate standing at 69.5%. A tax of 5.79 billion was paid by 59.3% of the registered composition dealers who filed their quarterly return in April. “This represents a tipping point in the GST collection in India and indicates that the tax collections are stabilising- it is now essential to allow the reform to stabilise and not keep making constant changes as simplification and stability are essential attributes of increased tax compliance,” <a href="https://www.livemint.com/Politics/6VE7QlPV6PlQyZAoOH8PnO/GST-collections-cross-Rs1-trillion-in-April-the-first-time.html" data-type="tilCustomLink">said</a> M.S. Mani, a partner at <keyword id="6356108" type="ORGANIZATION" weightage="20" keywordseo="deloitte-india">Deloitte India</keyword>. The <keyword id="6355040" type="ORGANIZATION" weightage="20" keywordseo="GST-Council">GST Council</keyword> will meet next via teleconference on May 4, when it is <a href="http://www.thehindu.com/business/Economy/april-gst-collection-of-over-ras-1-lakh-crore-a-landmark-jaitley/article23738000.ece" data-type="tilCustomLink">expected</a> to unveil a new and simplified return filing format, which is hoped to increase compliance.

India crosses the trillion mark in tax collection in April, the first time since GST was implemented

<a href="http://www.businessinsider.in/searchresult.cms?query=GST&amp;sortorder=effectivedate">GST</a> will benefit across the country, but <keyword id="6362513" type="ORGANIZATION" weightage="20" keywordseo="Startups">startups</keyword> have a lot of reasons to rejoice. Simplifying the <keyword id="4776373" type="UNKNOWN" weightage="60" keywordseo="tax-structure">tax structure</keyword> means startups can be both disruptive and innovative in their business models. 
 The <keyword id="6354679" type="ORGANIZATION" weightage="60" keywordseo="GST">GST</keyword> will champion Indian Prime Minister <a href="http://www.businessinsider.in/searchresult.cms?query=Narendra+Modi&amp;sortorder=effectivedate">Narendra </a><a href="http://www.businessinsider.in/searchresult.cms?query=Narendra+Modi&amp;sortorder=effectivedate">Modi</a>’s drive to build a more conducive environment for doing business in India. 
As the GST Bill appears in the Rajya Sabha today, Business Insider looks into the nitty-gritty of how this new tax structure can help startups in India. 
 
Easier to do business: 
A lot of startups in India, <a href="http://www.businessinsider.in/searchresult.cms?query=e-commerce&amp;sortorder=effectivedate">e-commerce</a> ones in particular have faced several gnawing tax regulations in several states. GST will bring a much needed uniform legislation where registration is centralized, and scaling isn’t a pain. 
 
Save on Logistics: 
In the day and age of <a href="http://www.businessinsider.in/searchresult.cms?query=Amazon+Prime&amp;sortorder=effectivedate">Amazon Prime</a>, your parcel can’t afford to get stuck at small border checkpoints due to tax issues. Inter-state commercial transport will get cheaper by up to 20%. 
 
Ashish Goel, CEO and Co-founder at <a href="http://www.businessinsider.in/searchresult.cms?query=Urban+Ladder&amp;sortorder=effectivedate">Urban Ladder</a> validates the point. "Introduction of GST will be a huge step by the government in backing its promise of ease of doing business. As a consumer <keyword id="35621" type="UNKNOWN" weightage="40" keywordseo="e-commerce">e-commerce</keyword> brand, our focus is on building a seamless supply chain and logistics network that helps us fulfil customer orders in different parts of the country" , he says. 
 
Moving right ahead! 
 
Boost India’s growth 
GST will boost India’s <a href="http://www.businessinsider.in/searchresult.cms?query=GDP+growth&amp;sortorder=effectivedate">GDP growth</a>. How you ask - by bringing down the fiscal deficit. 
 GST will boost the GDP. “By eliminating the cascading effect of multiple Central and State taxes, GST would reduce the cost of doing business and increase profitability, which in turn, would attract investments and ultimately help <keyword id="44910" type="UNKNOWN" weightage="40" keywordseo="GDP-growth">GDP growth</keyword>,” the CRISIL analysis report stated. 
 
Mind, the end-consumer bears the GST charged by only the last dealer in the supply chain. This makes it for the consumer and increases the profitability of his business. Simplifying the tax regime would also lead to better compliance, i.e. better tax collection. This will help bring down the fiscal deficit. 
 
Exceptions for startups: 
Any business with revenue of over Rs. 5 lakhs has to pay VAT now. With GST coming in, this will be bumped up to Rs 10 lakhs. Also, businesses with revenues of up to Rs. 50 lakhs will have lower tax slabs. More savings means more expansion. 
 
Process gets simpler: 
A young startup can’t afford to spend too much time and energy looking into elaborate tax procedures. GST will help cut to the chase by integrating all taxes. 
 
Also, GST will not distinguish between sales and services. Tax calculation will get easier, meaning more time to brainstorm. 
 
The GST will help everybody. It seems so obvious now, doesn’t it? 
 
<a href="http://economictimes.indiatimes.com/thumb/msid-49437737,width-600,resizemode-4,imglength-139495/news/economy/policy/finance-ministry-seeks-india-inc-views-on-certain-gst-provisions.jpg">Image Source</a>

GST – here’s how it will help
your startup

New Delhi, Dec 4 () The GST Council meeting scheduled to be held on December 18 is likely to deliberate on raising cess on some more products to meet the growing need of compensation among other issues.
 The meeting of all-powerful GST Council is going to be held against the backdrop of lower-than-expected GST collection.
 The GST Council will deliberate on the matter of GST compensation at its meeting on December 18, Minister of State for Finance Anurag Singh Thakur said on the sidelines 62nd founding day of Directorate of Revenue Intelligence (DRI).
 He also said India's economic fundamentals continue to be strong and that the government would take more steps to revive the economy.
 India's GDP growth slumped to a 26-quarter low of 4.5 per cent in the second quarter of the current fiscal as gross value added to the manufacturing sector contracted for the first time in nine quarters.
 The last time GDP grew at a slower pace was in the fourth quarter of 2012-13, when it had expanded only 4.3 per cent.
 The compensation requirements have increased significantly and are unlikely to be met from the compensation cess being collected.
 This discussion is quite critical as lower GST and compensation cess collections have been a matter of concern in the last few months, according to a letter written by the GST Council to Commissioner, SGST of all states.
 The Council has sought suggestions, inputs or proposals as regards measures, on compliance as well as rates which would help in augmenting revenue.
 "Specific suggestions may please be provided on ... review of items currently under exemptions, GST and compensation cess rates on various items, rate calibrations for addressing the inverted duty structure, compliance measures other than those currently under implementation and any other measure to augment revenue," it said.
 The suggestions made will be placed before the committee for urgent examination, it said.
 The GST Council is headed by Finance Minister Nirmala Sitharaman.
 Earlier in the day, finance ministers and representatives of opposition-ruled states met Union Finance Minister Nirmala Sitharaman and expressed their concern over the delay in the release of GST compensation which has put them in an acute financial position. DP DP MR
MR

GST Council to review revenue position, compensation cess on Dec 18

Logistics is one tricky sector that is surely going to benefit once the Good and Service Tax (<keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword>) gets rolled out from July 1. However the results won’t be too quick. Right now, Blue Dart Express, Gateway Distriparks and Allcargo Logistics are running negative return in the market. At such a juncture, logistic industry is waiting for July just like the farmers of Maharashtra awaiting the rain. <a href="http://www.businessinsider.in/Heres-why-this-is-the-worst-time-to-be-in-the-business-of-hospitality-in-India/articleshow/58805542.cms" data-type="tilCustomLink">Here’s why this is the worst time to be in the business of hospitality in India</a> The current system of indirect taxation in India is very complex and logistics faces it the most. Each of the 29 states levies different magnitude of taxes when goods are moved across their borders. Both central and state taxes sums up to around 25-27% on goods. Pratish Sanghvi, Co-Founder of Grab a Grub Services Pvt. Ltd said that once GST implementation gets in place, existing taxation structure will dissolve and a new unified structure for all states will come into force. Hence, the effective rate is expected to come down to around 19-21%. This reduction of 6% in taxes will count a lot for the final burden bearing consumers. Grab is India’s first and leading last mile delivery service for businesses and merchants to bridge the gap between them and consumers. GST will lead to a total reduction of 20% in other logistics cost like warehousing, freight forwarding etc. However Sanghvi cautions the major challenge before the government is to arrive at a revenue neutral rate to ascertain no adverse effects on the revenues of central and state governments after the implementation of GST. Furthermore, the government has to protect the interests of all the stakeholders including the ultimate consumers. Structural re-engineering of the logistics network GST will remove process bottlenecks. A recent study revealed that out of the total transit time taken by a truck, it remains idle for 40% of the time due to border checks for octroi and other entry barriers. After removal of this hurdle, quicker movement of goods and increased number of deliveries will ensure operational efficiencies. Also, an estimated cost of 25% can be saved, which is incurred due to stoppages and idleness. “Currently to avoid interstate taxes, businesses build warehouses near their manufacturing facilities, ignoring the geographical disadvantages. After GST implementation, businesses will warehouse their goods at most suitable locations without the fear of multiple taxes,” said Sanghvi. Government has also allowed 100% FDI in warehousing. It will be much easier for foreign players to comply with the single point GST norms than with the previous ones. Trucking business: the major blind spot “Trucking business was always unorganized and fragmented, and it hasn’t changed much in recent time. Local businesses are largely dependent on the nearby transporters which usually rip off the users despite poor quality and inefficiencies,” Singhvi informed. There are many startups such as Rivigo and Blackbuck that are eyeing a complete revolution of the industry. A cost effective mix of higher efficiencies and lower transit time is the product they are going with into the market. India vis-à-vis global benchmarks after the implementation of GST GST has received critical acclaim globally. There are more than 160 countries around the world that have already implemented GST. After a delayed roll out, drastic changes will take place in India’s economic future. Globally, the average rate of GST ranges between 15-20%. We are yet to decide a revenue neutral rate, but the vibes are positive for logistics industry. In India, the operational inefficiency exists in the core and costs are on a higher side than other countries. This bullwhips the inflation on other products as well. So, for a crucial industry like logistics, <a href="http://www.businessinsider.in/Heres-why-this-is-the-worst-time-to-be-in-the-business-of-hospitality-in-India/articleshow/58805542.cms" data-type="tilCustomLink">GST is the need of the hour.</a> Better logistics = Better nation Logistics is considered as most crucial for any nation’s development. Level of economic activity in country and scale of logistics are positively correlated. Ecommerce penetration and schemes like Make in India will push it even further. If taxation regime is simplified through GST, it will prove to be major reboot for the logistics industry. GST will also be a key enabler for businesses to reorganize their supply chain, in accordance with various business considerations.

Here's how GST is going to be ‘legendary’ for logistic industry in India

New Delhi, Dec 17 () The GST Council will meet on Wednesday to review the taxation structure for shoring up the revenue as lower-than-expected collections has led to a delay in compensation payment to states.
 Some of the states such as West Bengal have opposed any hike in cess rates or rate calibration amid a slowdown in the economy, stating that consumers as well as the industry are passing through a distressing time. 
 With the revenue shortfall looming large, there have been suggestions for raising GST rate and cess to meet the gap. 
 The GST Council headed by Finance Minister Nirmala Sitharaman had sought suggestions from states on review of GST and compensation cess rates on various items, rate calibrations for addressing the inverted duty structure, compliance measures other than those currently under implementation to augment revenue.
 In a letter to Sitharaman, West Bengal Finance Minister Amit Mitra said states have received letter from the GST Council wherein suggestions have been sought on review of items currently under exemption for shoring up GST revenues. 
 "This is indeed alarming. We should not in any way tinker with the rate structure or impose any new cess at a time when the industry and consumers are going through the most distressing times with 'stagflation' knocking at our door (stagnation accompanied by growing inflation)," Mitra said.
Many economists, including former RBI Governor Raghuram Rajan, have expressed fear of India getting into a slow growth high inflation or stagflation mode.
 Rising food prices pushed retail inflation in November to an over three-year high of 5.54 per cent, while industrial sector output shrank for the third month in a row by 3.8 per cent in October, indicating deepening slowdown in the economy.
 India's economic growth slowed to a 6-year low of 4.5 per cent in the July-September quarter. With inflation rising, fears of stagflation -- a fall in aggregate demand accompanied by rising inflation -- have resurfaced.
 "Instead of increasing or imposing new taxes or cesses the GST Council has to collectively find ways and means to provide relief to industry so that they are able to tide over the present crisis...the solution of additional resource mobilisation lies not in tinkering with the rate structure but focus on anti evasion and fraud detection measures," Mitra said.
 Facing heat over delay in payment of GST compensation, the central government on Monday released Rs 35,298 crore to states to make up for the loss of revenue due to rollout of the Goods and Services Tax (GST).
 When GST was rolled out on July 1, 2017, states were through legislation promised to be compensated for the loss of revenue as not just their taxes such as VAT were being subsumed in the new levy but also their right to levy taxes was being snatched.
The compensation amount was fixed at 14 per cent on top of revenue in the base year of 2016-17. The corpus for paying compensation was collected by levying a cess on top of GST rates on tobacco products, cigarettes, aerated water, automobiles, and coal. 
 The Central GST collection fell short of the Budget Estimate by nearly 40 per cent during the April-November period of 2019-20, according to government data.
 The actual CGST collection during April-November stood at Rs 3,28,365 crore, while the Budget Estimate was Rs 5,26,000 crore for these months.
 According to sources, the Finance Ministry has set a Rs 1.1 lakh crore monthly GST collection target for the remainining four months of 2019-20 financial year
 Revenue Secretary Ajay Bhushan Pandey had a video conference meeting with top tax officials and impressed upon them to step up measures to achieve direct and indirect tax collection targets.
 Officers have been particularly urged to ensure that during field enforcement drive and visits, no taxpayer is overreached or troubled, the source said. DP MR
MR

GST Council to meet on Wed amidst talk of rate hike to meet revenue shortfall

(Eds: Adding details) New Delhi, Jul 1 () GST revenue collection in June stood at Rs 90,917 crore, up from Rs 62,009 crore mopped up in May and Rs 32,294 crore in April. The goods and Services Tax (GST) mop up was 9 per cent lower on a year-on-year basis in June, while it was 62 per cent down in May and fell 28 per cent in April. GST collections for the first quarter (April-June) of this fiscal declined 59 per cent, when compared to the same quarter last year as lockdown imposed to contain spread of COVID-19 pandemic severely impacted economic activity. "The revenues during the financial year has been impacted due to COVID-19, firstly due to the economic impact of the pandemic and secondly due to the relaxations given by the government in filing of returns and payment of taxes due to the pandemic. However, figures of past three months show recovery in GST revenues," the finance ministry said in a statement. States like Punjab, Chhattisgarh, Madhya Pradesh, Bihar, Assam, Andhra Pradesh, Telangana, Karnataka witnessed growth in collection in June over last year. North Eastern states like Sikkim, Manipur, Mizoram, Tripura, Nagaland, Arunachal Pradesh too witnessed Increase in revenue during the month. The gross GST revenue collected in the month of June, this year stood at Rs 90,917 crore of which Central GST is Rs 18,980 crore, State GST is Rs 23,970 crore, Integrated GST is Rs 40,302 crore (including Rs 15,709 crore collected on import of goods) and Cess is Rs 7,665 crore, the statement said. "The government collected gross #GST revenue of Rs 90,917 crore in June 2020, which is 91 per cent of the collections in June 2019," Office of Finance Minister Nirmala Sitharaman said in a tweet. During the month, the revenues from import of goods were 71 per cent and the revenues from domestic transaction were 97 per cent of the collections from these sources during the same month last year. The government has settled Rs 13,325 crore to Central GST and Rs 11,117 crore to State GST from Integrated GST as regular settlement. The total revenue earned by central government and state governments after regular settlement in June, stood at Rs 32,305 crore for Central GST and Rs 35,087 crore for the State GST. The government had allowed a relaxed time schedule for filing of GST returns and returns for the month of April, March as well as February got filed during June 2020. Some returns of May 2020, which would have otherwise got filed in June 2020, will get filed during first few days of July 2020, the Ministry added. EY Tax Partner Abhishek Jain said the GST collections while in the first quarter have obviously witnessed a substantial dip because of the current pandemic, however, the increasing trend in June inclines to a recovery being in line soon. "With this shortfall and related dip in revenue for states as well, the Centre's obligations to compensate States for any shortfall is an area of concern and this being further deepened with muted compensation cess collections," Jain added. Deloitte India Partner M S Manu said the June revenue numbers indicate that a revival is underway and collections will improve in the coming months. "In June some of larger producing states have shown an increase in collections or stable revenues compared to last year while some of the consuming states have shown a decline," Mani added. JD DRR DRR

GST collection in June at Rs 90,917 cr, Q1 mop up dips 59 pc due to COVID-19 lockdown

<ul><li>Former Finance Minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> has slated the two years of Good &amp; Services Tax(<keyword id="6354679" type="DEFINITION" weightage="20" keywordseo="gst">GST</keyword>) saying that GST has proved to be both “consumer &amp; assessee friendly.” </li><li>The revenue hit a ₹900 billion annual loss due to heavy tax reductions under the Goods &amp; Services Tax (GST) scheme. </li><li>Jaitley rolled out the GST scheme in July 2017, which has widened the consumer base for tax collection by 84%.</li></ul>Just a few days ahead of the Union Budget, former Finance Minister Arun Jaitley said that the government has taken an annual revenue hit of ₹900 billion due to tax reductions under the Goods &amp; Services Tax (GST) scheme. In a blog written to commemorate two years of introduction GST, Jaitley said that the new tax regime is both “assessee and consumer-friendly.” Most of the consumer products now come under lower GST slabs and daily-use items are under the lowest tax bracket of 5%. While only luxury goods have been in the “white goods.” Luxury items such as small cars, consumer durables like AC and Refrigerators and cigarettes have been kept in 28% tax range. 
 
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 He also said that arriving to a consensus in the Parliament over the implementation of the scheme had been difficult for the government. “The critical point which enabled the Government to persuade the States was to cushion them with a 14% annual increase from the tax base of 2015-16 for a period of five years,” Jaitley reminisced. Wider Tax Net The consumer base for tax collection has widened over the last two years by 84%, enabling higher tax collections, thereby. The present consumer base has hit 12 million, which was 6.5 million. “The high taxation of pre GST era pinched the consumers’ pocket and acted as a disincentive against tax compliance,” said Jaitley who has stepped down from the cabinet due to health reasons. According to him, the transition to GST in India has been smooth, as this tax had brought down governments in many countries. There were protests in Surat following GST. However, two years on, the Narendra Modi-led BJP government was able to secure seats in Gujarat with high margin. See also: <a href="https://www.businessinsider.in/niti-aayog-wants-education-budget-to-increase-further/articleshow/69941463.cms">India’s education budget has improved over the years — but it’s still too low</a> <a href="https://www.businessinsider.in/health-budget-2019-india-might-increase-spending-on-healthcare-but-that-may-not-be-enough/articleshow/69956156.cms">Health Budget 2019: India might increase spending on healthcare but that may not be enough</a>

You Searched For "india gst revenue" and got 13 results

India's GST revenue collection reaches new high of over ₹1.23 crore in March

IANS

GST to have macro economic impact: RBI

India's GST revenue collection for August slows to Rs 90,669 crore

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BI India Bureau

India's GST revenue falls below ₹1 lakh crore for the first time this year

IANS

States stare at over Rs 1 lakh cr revenue gap post withdrawal of GST compensation

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India crosses the trillion mark in tax collection in April, the first time since GST was implemented

BI India Bureau

GST – here’s how it will help your startup

Saikat Pyne

GST Council to review revenue position, compensation cess on Dec 18

PTI

Here's how GST is going to be ‘legendary’ for logistic industry in India

Suchayan Mandal

GST Council to meet on Wed amidst talk of rate hike to meet revenue shortfall

PTI

GST collection in June at Rs 90,917 cr, Q1 mop up dips 59 pc due to COVID-19 lockdown

PTI

India lost ₹900 billion due to tax rate cuts under GST, says former Finance Minister Arun Jaitley

Prerna Sindwani

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