The Goods and Service Tax (GST) collections are expected to cross Rs 1 lakh crore in November and December 2018. The Finance Ministry backs up the expectations on account of better compliances, lesser tax frauds and also the festive and the wedding seasons demand.
The collections during the November and December 2018 will reflect the sales and the purchases made during October and November 2018.
The GST collections rose to Rs 1,00,710 in October 2018, after a gap of 5 months, on account of lower rates, anti-tax evasion measures, better compliances; this amount is 6.64 per cent higher as compared to September’s collection of Rs. 94,442 crore. The demand for this festive season has also helped improve the collections. With the current trend of increasing revenue, it is expected that the monthly collections will touch the Rs 1 lakh crore landmark in November and December.
The Indian festivities and wedding season is a crucial time for purchases, and the sellers offer discounts and come up with promotional offers to boost the sales; this will in turn uplift the revenues for the government. Besides, the GST authorities initiative to fix loopholes in the system to prevent tax evasion will help raise collection shortly.
The GST authorities targeted monthly collections is to be Rs 1 lakh crore in the fiscal year 2018-19, but only the revenue figures of April 2018 which were Rs 1,03,458 could cross the landmark. The actual revenue stood at Rs 94,016 crore in May, Rs 95,610 crore in June, Rs 96,483 crore in July, Rs 93,960 crore in August and Rs 94,442 crore in September.