The Revenue Secretary Tarun Bajaj has stated that they expect an average monthly Goods and Services Tax (GST) collections during FY 2022-23 to hover between Rs.1.4 trillion to Rs.1.5 trillion. The Centre expects this number to be around Rs.1.2 trillion.
The Revenue Secretary made the statement at an event held in Mumbai, Maharashtra. The latest gross GST collections for May 2022 account for Rs.1.41 lakh crore, indicating a higher than the average collections for both the Centre and states. The number also marks the fourth time monthly collections have crossed the Rs.1.4 lakh crore since the introduction of GST in 2017, June 2022 being the third consecutive month.
The development is noteworthy since the GST Council did not raise the GST rates or slabs in the last year. Yet, the government is seeing a good boom in the average monthly GST collections.
Tarun Bajaj also exclaimed that other taxes under the indirect tax system, such as the excise duty and customs duty, is witnessing some issues due to tax rate reductions. However, he was positive that the direct tax collections could be better than the budgeted numbers for FY 2022-23.
On the other hand, the CBIC Chairman, Vivek Johri, also opined that GST collections would improve going forward. In contrast, a customs duty will face some challenges in picking up. The collections of May 2022 related to the activity or transactions carried out in April 2022. The month is crucial under the GST law with many businesses busy closing books of accounts and hence, undergoing the yearly reconciliation of the GST data.
The Centre has been upfront in releasing payments to states. More recently, on 31st May 2022, it cleared the pending GST compensation to states amounting to Rs.86,912 crores up to 31st May 2022 even when they had less than Rs.25,000 crore in the compensation fund.
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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.