Economy

GST Collection for February Stands at Rs 1,05,366 Crore

For February, Rs 1,05,366 crore was the gross GST revenue collected out of which Rs 20,569 crore was CGST; Rs 27,348 crore was the SGST, and Rs 48,503 crore was the IGST (including Rs 20,745 crore collected via imports). Cess stood at Rs 8,947 crore (inclusive of Rs 1,040 crore collected via imports). 83.53 lakh GSTR-3B returns were filed between January and February 2020.

As a part of the regular settlement, Rs 22,586 crore has been settled to CGST by the government. Likewise, Rs 16,553 crore has been settled to SGST. After the regular settlement, both the central as well as the state governments have earned a total revenue of Rs 43,901 crore for SGST and Rs 43,155 crore for CGST.

In comparison to February 2019, the GST revenue collection made during February 2020 has seen 12% growth with regards to domestic transactions. When the GST collection made via the import of goods is considered, there has been an increase of 8% in February 2020 versus February 2019.

The Central Board of Indirect Taxes and Customs (CBIC) has been constantly putting in efforts to increase the GST revenue collection by bringing down the input tax credit (ITC) fraudulent claims. The GST authorities have been informed to pay attention to capturing ITC claims that are illicit in nature while eliminating miscreants who might have used fake invoices or fake/inflated e-way bills. Lately, several notices have been dispatched by tax authorities asking companies to reverse ITC claims which were raised incorrectly.

Also Read: GST Collection for December Goes Beyond Rs 1 Lakh Crore

Tax authorities have also been asked mandatorily to utilise data analytics for checking the mismatch of purchase invoices and supply, return filing mismatches, excess invoicing, refunds availed in excess, refunds as per the inverted duty structure, and huge or fraudulent ITC claims.

Tax experts believe that the consecutive GST collections exceeding the Rs 1 lakh crore-mark are a motivating sign for the economy. Going forward, the revenue collection is anticipated to stabilise further. 

With the upcoming new changes such as the new GST returns and e-invoicing which are slated to go live from starting next month, more stability in the GST revenue collections is expected.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in

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