On 15 July, the Finance Minister mentioned that the GST collection for the financial year (FY) 2018-19 has increased to Rs 5.18 lakh crore in relation to union territories (UTs) and states. In the previous FY 2017-18, the GST collection was Rs 2.91 lakh crore.
FM also added that the UTs/states had shown consistent improvement concerning GST collection with time. Also, they have been assured 14% growth for five years via compensation payments from the central government.
Nirmala Sitharaman also stated that various steps had been initiated to increase revenue collection. These steps include large-scale automation of business processes, actions to verify compliance, proposal to implement electronic invoice system, implementation of e-way bill mechanism, and execution based on risk assessment.
On the other hand, Centre released a compensation of Rs 81,177 crore to states during FY 2018-19 versus the payment of Rs 48,178 crore which was released during FY 2017-18.
Effective 1 July 2017, GST comprising 17 local taxes was rolled out. In FY 2017-18, the average GST collection (gross) was Rs 89,885 crore. However, in FY 2018-19, the average gross GST collection increased to Rs 98,114 crore.
Bhavana is a Senior Content Writer handling the GST vertical. She is committed, professional, and has a flair for writing. When away from work, she enjoys watching movies and playing with her son. One thing she can’t resist is SHOPPING! Her favourite quote is: “Luck is what happens when preparation meets opportunity”.
