Business Mantra News
Goods & Service Tax (GST) collection has dropped down to Rs. 80,808 Crores in November, 2017 which is the lowest since the introduction of the new Tax regime in July, 2017.
GST collections is comparatively lower than the previous month’s collection which was reported to be over Rs. 83,000 Crores.
This slowdown in GST collection has been noticed due to reduction of rates of 200 item in the second half of the November, 2017 and also refunds to exporters has started recently.
Despite increase in number of registered taxpayer under GST, decline in GST revenue collection is really matter of concern for the Government.
GST collections in July was over Rs. 95,000 Crores, while in August, 2017 the collection was over Rs 91,000 Crores. In September, it was over Rs. 92,150 Crores and in October it was over Rs 83,000 Crores.
The Government failed to ensure compliance of the key features of this new tax regime such as invoice matching, e-way bills, as well as reverse charge mechanism have been postponed, therefore, GST collection slipped.
To keep the revenue back on track, Government has to improve compliance of the key features of the GST.
Government needs to instant review its fiscal policy as there is a declining trend in exports and it may continue in the up-coming months.