CGST revenue for Aug - Nov period stands at Rs 58,556 crore

MUMBAI: The general CGST (Central GST) source of revenue from August to November 27 has been Rs 58,556 crores. In addition to this, an amount of Rs 16,233 crores has been transferred from IGST (Integrated GST) account to CGST account by way of agreement of finances on account of inter-state provide of products and services within the reported period.

Further, Rs 10,145 crores is being transferred to CGST account from IGST account for the month of November 2017 by way of agreement. The primary reason for the distance in source of revenue of CGST and SGST (State GST) has been that extra CGST legal responsibility has been discharged the use of transition credit score relatively than by way of cash. Thus, taxpayers are the use of the balance credit score available with them within the previous tax regime, which is the reason why there's an additional revenue gap within the centre's revenue.

The reason for downward development of tax revenue underneath GST may well be attributed to the next elements :

• Because of the first time requirement of paying IGST on switch of products from one state to every other state even inside the similar company, there used to be an more money go with the flow of IGST within the first three months. As and when the final transaction of those items takes place, the credit score for IGST is being utilized for cost of SGST and CGST and therefore, the inflow of recent taxes is low
• Since the total incidence of taxes on lots of the commodities have come down underneath GST, it will naturally have some implication on the revenues of the government.
• The tax administration of GST is now in keeping with self-declared tax go back, during which the assessee decides on his own how much tax legal responsibility he has and claims input tax credit score as in keeping with his own calculations. Since implementation of probably the most primary options of GST corresponding to, matching of returns, e-way invoice in addition to reverse price mechanism were postponed the tax compliance will not be on top of things.