File photo. Photograph:( Zee News Network )
'The total gross GST Revenue collected in the month of January, 2019 has today crossed Rs 1 lakh crore. This has been a significant improvement over collection of Rs 94,725 crore during last month and Rs 89,825 crore during the same month last year,' the ministry tweeted.
GST collections in January crossed Rs 1 lakh crore-mark after a gap of two months, the Finance Ministry said Thursday.
"The total gross GST Revenue collected in the month of January, 2019 has today crossed Rs 1 lakh crore. This has been a significant improvement over collection of Rs 94,725 crore during last month and Rs 89,825 crore during the same month last year," the ministry tweeted.
This is the third time in current fiscal that GST collections have crossed the Rs one lakh crore-mark. Previously in April and October, the collections had surpassed this milestone.
"Robust Economy: Gross GST Revenue in Jan 2019 crossed Rs 1 lakh crore... This has been achieved despite huge reduction in tax rates for various items benefitting poor, farmers & middle class," Finance Minister Piyush Goyal tweeted.
GST collection stood at Rs 1.03 lakh crore in April, Rs 94,016 crore in May, Rs 95,610 crore in June, Rs 96,483 crore in July, Rs 93,960 crore in August, Rs 94,442 crore in September, Rs 1,00,710 crore in October, Rs 97,637 crore in November and Rs 94,725 crore in December 2018.
The ministry said the increase in GST mop up in January has been achieved despite various tax relief measures implemented by the GST Council.
In the 10 months (April-January) of the current fiscal, the government has mopped up over Rs 9.71 lakh crore from Goods and Services Tax (GST). The 2018-19 budget had estimated annual GST collection at Rs 13.48 lakh crore, which means a monthly target of Rs 1.12 lakh crore.
The monthly average GST collection in last fiscal (July 2017 - March 2018) was Rs 89,885 crore.
PwC India Partner and Leader, Indirect Tax, Pratik Jain said it comes as a welcome relief for the government, particularly after some dip in the last month.
"This again underlines that collections are increasing steadily as compliances are getting simplified, rates are getting reduced and administration is getting sharper. It's clear that overall collection for the entire year would be significantly lower than what was budgeted," Jain said.
Deloitte India Senior Director M S Mani said: "The collection figures are impressive as they come on the back of rate reductions; if the same pace is maintained, the revenue targets would be close to being achieved."
These numbers indicate that rate reductions result in increased revenues and compliance - we are moving closer to the targeted GST collections for the fiscal, Mani said.
Conventionally, GST collection data for a month is released on first day of the subsequent month. However, for the month of January, the full details of the revenue mopped-up will be released on February 2.