According to the press reports by the Union Finance Ministry, the monthly GST collections increased by 56% to more than Rs.1.44 lakh crore in June 2022. The GST collected in May was Rs.1,40,885 crore, up 44% from the same month last year.
It is the fourth consecutive month since March 2022 that the monthly GST collection has exceeded the Rs.1.40 lakh crore mark, and only the fifth time overall since the introduction of the GST.
The FM opined that the collections of June 2022 saw a “rough bottom line.” However, the high GST collections coincide with several macroeconomic indicators already showing improvement, leading to a new monthly average of 1.4 trillion in Q1 of FY23.
It would reassure many states concerned about their ability to mobilise money in the post-cess era because it occurs simultaneously as the guaranteed payout to states is coming to an end.
In Chandigarh, the recent two-day 47th GST Council meeting made crucial announcements. During the meeting, the GST rate on several items was also amended. The 48th GST Council meeting, expected to be held in Madurai in the first week of August 2022, will decide the GST rates for online gaming, horse racing, and casinos.
A choice could not be made about the compensatory cess. According to general statements made by the Finance Minister, compensation can be sustained for at least a few years, if not for five years.
Beginning on 1st July 2017, the GST law replaced 17 federal and state taxes. It was established at that time when states would get compensation for any revenue losses resulting from the new tax for five years. Due to the pandemic, states have asked for an extension of this compensation system.
For any clarifications/feedback on the topic, please contact the writer at annapoorna.m@clear.in
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.
