GSTN has released its monthly tax collection figures for July 2019. The month of July 2019 recorded a total GST collection of Rs 1,02,083 crores, marking a 5.8% growth in comparison to the same month of the corresponding previous year. It is higher by 2% on M-o-M basis.
Some economists attribute the whopping increase to the higher mop-up under the integrated GST. On the other hand, since the GSTR-9 was previously due by 31 July 2019, the growth can also be due to the payment of tax dues by annual return filers for FY 2017-18.
The monthly revenue collections crossed Rs.1Lakh crore mark previously in April 2019 and May 2019. July 2019 is the third month in FY 2019-20 to have passed the one trillion figure and seventh one since the launch of GST. On the downside, the budgeted target for FY 2019-20 is so far yet to be met, obliging the government to revise the estimated figures to Rs.5.26 trillion.
While diagnosing the collections of July 2019 under each tax head, IGST has outperformed the State collections in comparison to the previous month. SGST collections fell by Rs.335 crore for July 2019 while the IGST collections for July 2019 rose by 5.9% to a total of Rs.50,612 crore.
The press release further stated that while comparing the period of April-July 2019 vis-à-vis the previous year 2018, it was noticed that the domestic component grew by 9.2%. The GST on the imports has reduced by a meagre 0.2%, but the collections have increased by 6.83%.
The revenue collection is likely to see a slight uptrend in the coming month of August 2019 attributable to the deadline push given for the filing of GSTR-9 to 31 August 2019. The extension may invite more taxpayers to come forward to make full disclosure and pay any taxes still due.
GST return filing will take a new shape in the coming months with the new GST returns. With the compliance process undergoing a drastic change, the rest of the months may be able to pull it off with migration being the biggest challenge for taxpayers. Hence, the cumulative revenue collections may be able to touch the revised estimated figures for FY 2019-20.
Annapoorna, popularly known as Anna, is an aspiring Chartered Accountant with a flair for GST. She spends most of her day Singing hymns to the tune of jee-es-tee! Well, not most of her day, just now and then.