All-time high GST collections in April 2022
India’s gross Goods and Services Tax (GST) revenues hit a new high of ₹1.68 lakh crore in April 2022. For the first time, gross GST collection has crossed the ₹1.5 lakh crore mark.
- Is the growth in collection uniform across all states?
- Which state recorded the highest growth of GST revenue?
- How much GST is collected in FY22?
- What are the steps taken by the government that contributed to high GST collections?
- Are the higher collections solely driven by a rebound in economic activity?
- What will be the impact of the increase in GST collection?
- What is GST?
- What are the components of GST?
- Which component of GST is the largest contributor to GST growth last year?
- What is the GST council?
Is the growth in collection uniform across all states?
- There were wide variations in growth trends across States.
- While Tamil Nadu’s collections grew 10% in April, Odisha saw collections rise by 28%.
- Six States and Union Territories reported a contraction in revenues from a year ago, including Bihar (-2%), Manipur (-33%), Mizoram (-19%) and Tripura (-3%).
Which state recorded the highest growth of GST revenue?
Arunachal Pradesh recorded the highest growth of GST revenue during April 2022 vis a vis April 2021, with a record 90% jump in GST collection.
How much GST is collected in FY22?
For FY22, total GST collections amounted to Rs 14.83 lakh crore, up 30% from Rs 11.37 lakh crore in FY21.
What are the steps taken by the government that contributed to high GST collections?
- Increase in compliance level: The government introduced a rule, according to which input tax credit (ITC) will be available only upon timely compliance by the vendors. This increased the GST tax filing.
- Coercive action against tax evaders: To create deterrence, asserts are being made.
- Use of technology: Enhanced data analytics and the use of Artificial intelligence to detect evasion have contributed significantly to the high collections.
The Centre called the record-high collections in April a sign of ‘faster recovery’.
Are the higher collections solely driven by a rebound in economic activity?
- Persistently higher input costs and high inflation also contributed to an increase in GST collections.
- Higher GST collections have also been driven by the surge in imports. Imports rose 54% year-on-year in FY22 driven by higher commodity prices.
What will be the impact of the increase in GST collection?
- The recent revenue uptick could be seen as a comforting signal about 2022-23 revenue prospects for policymakers at the Centre and the States.
- Higher tax inflows will give the GST Council more flexibility to go for the rationalisation of the GST rate slabs.
What is GST?
- Goods and Services Tax (GST) is an indirect tax imposed on the supply of goods and services. It is a multi-stage, destination-oriented tax.
- The 101st Amendment Act of 2016 paved the way for the introduction of the goods and services tax (GST) regime in India.
What are the components of GST?
- Central GST (CGST)
- State GST (SGST)
- Integrated GST (IGST).
Which component of GST is the largest contributor to GST growth last year?
Due to the surge in imports, integrated GST (IGST) on imports became the largest contributor to GST growth last year.
What is the GST council?
Goods & Services Tax Council (GST Council) is a constitutional body (Article 279-A) for making recommendations to the Union and State governments on issues related to Goods and Service Tax (GST). The GST Council is a joint forum of the centre and the states, with the Union Finance Minister as the Chairperson.
Month: Current Affairs - May, 2022
Category: Economy & Banking Current Affairs - 2022
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