GST collections in October missed Rs 1 lakh crore target for the continuous third month. The collections in October stood at Rs 95,380 crore, which is higher than the 19-month low collection of Rs 91,916 in the previous month. Out of the total collection, the share of CGST is Rs 17,582 crore; SGST is Rs 23,674 crore; IGST is Rs 46,517 crore, and Cess is Rs 7,607 crore. The total number of GSTR 3B Returns filed for the month of September up to 31st October 2019 is 73.83 lakh.
The government has also settled Rs 20,642 crore to CGST and Rs 13,971 crore to SGST from IGST as regular settlement. The total revenue earned by the Central Government and the State Governments after regular settlement in the month of October 2019 is Rs 38,224 crore for CGST and Rs 37,645 crore for the SGST.
The revenue during October 2019 is declined by 5.29 per cent in comparison to the revenue during October 2018. However, during April-October, 2019, the domestic component has shown 6.74 per cent growth while the GST on imports has shown contraction and the total collection has grown by 3.38 per cent.
"The YoY decline in the headline GST collections in October 2019 is disturbing, although it can partly be explained by the cumulative impact of GST rate cuts as well as subdued consumption growth. The next month’s collections, which will cover the festive period, will provide critical cues as to the extent of slippage that we could expect in the GST collections in FY2020 relative to the budgeted target," said Aditi Nayar, Principal Economist, ICRA.
With both direct and indirect tax revenues reporting a subdued performance in the recent months, a mixed outlook for economic growth in H2 FY2020, and the anticipated impact of the cut in corporate tax rates, we anticipate that the GoI's gross tax revenues may trail the FY2020 budget estimate of Rs 24.6 lakh crores by a considerable Rs 2.5-3.0 lakh crores, Aditi Nayar added.
Finance Minister Nirmala Sitharaman on July 5 pegged the annual GST collection target at Rs 6.63 lakh crore for FY20, up from last year's revised collections of Rs 6.43 lakh crore. The total collection from the indirect tax was pegged at over Rs 7.61 lakh crore for 2019-20 in the Interim Budget presented in February. However, low GST collections of the Goods and Services Tax could not only add to the Centre's fiscal woes but also deprive state governments of their assured compensation for the revenue shortfall.