New Delhi: The whole nation was troubled over imposed GST that was implemented from 1 July onwards has seen a 10% drop in its fourth-month collections in October making it to Rs 83,346 crore from over Rs, 92,000 crores in its preceding month said an official statement by the Finance Ministry.
The commodity rates that were slashed down is one of the reasons for the drop in GST collections.
As many as 50.1 lakh Goods and Services Tax (GST) returns were filed for October which resulted in a revenue of Rs 83,346 crore in this month.
The earlier imposed GST was surging with high prices that included excise duty, service tax and VAT. The revenues collected from these were further split between the state and the center.
The finance ministry had said around Rs 10,806 crore was released to states from the revenue collected in the months of July and August along with a compensation of Rs 13,695 crore in the months of September and October.
Speaking of the compensation given from the collected revenues the ministry said it is to make up for any loss of revenue to the states which were due to GST implementation.
“The states’ revenues have been fully protected taking base year revenue as 2015-16 and providing a projected revenue growth rate of 14 per cent,” the ministry said.
As per the official data released the GST collections in the month of July was over Rs 95,000 crore, in August were over Rs 91,000 crore. The September collections were over Rs 92,150 crore and October is the fourth month since the GST implementation.
“As and when the final transaction of these goods takes place, the credit for IGST is being utilised for payment of SGST and CGST and therefore, the inflow of new taxes is low,” the statement read.
The ministry also added that since the taxes on most of the commodities have been slashed it would have its impact on GST’s revenues.
The total number of initial GSTR-3B returns filed for the return period July, August, September and October 2017 till is 58.7 lakh, 58.9 lakh, 57.3 lakh and 50.1 lakh, respectively.