Goods and services tax (GST) collection crossed the Rs 1 trillion mark for the second straight month in December, but fell short of the Rs 1.1 trillion target set for the last four months of 2019-20.

The latest numbers, however, indicated the stabilisation of revenue collection owing to anti-evasion measures introduced by the government.

The mop-up stood at Rs 1.031 trillion in December, slightly lower than the seven-month high of Rs 1.034 trillion collected in November. On a year-on-year basis, the GST receipts in December 2019 posted a growth rate of 8.9 per cent, the data released by the finance ministry showed on Wednesday.

These figures are for GST on the transactions done in November and collected in the month of December.

Although the December figures come as a breather for the government, which is facing intense revenue stress, these are lower than the numbers needed to meet the steep target for 2019-20.

Revenue Secretary A B Pandey has pressed for a monthly GST collection target of around Rs 1.1 trillion between December 2019 and March 2020.

Of these four months, Rs 1.25 trillion collection has to be achieved in at least one month, he had told tax officials.

GST collection on domestic transactions witnessed 16 per cent growth, the highest during the year. GST collection on imports continued to witness a contraction of 10 per cent, as against a fall of 13 per cent in November, indicating persistent weakness in domestic demand and production.

The ministry also released state-wise GST collection figures from domestic transactions. Arunchal Pradesh witnessed the highest growth at 124 per cent to Rs 58 crore in December 2019 year-on-year.

Published On : 02-01-2020

Source : SME Times