It might force the government to loosen the pressure on spending in key ministries and take back the unspent amount, officials indicated. “As we approach a general election, no new projects are launched, no new work orders are given, and the expenditure slows down. This will come as a relief in terms of balancing the fiscal (situation),” a government official said.
Total collection in the first eight months of 2018-19, or two-thirds of the financial year, stands at Rs 7.8 trillion, or 63 per cent of the annual target. Experts see it as a silver lining, since the November collection did not go below the average of the last seven months.
“The monthly collections have now stabilised between Rs 950 billion and 1,000 billion. Given that it is short of expectations, the government will have to work on measures to enhance the revenues such as more granular use of data analytics and further tightening of tax administration. It will be interesting to see if the GST
Council still recommends further rationalisation of rates in the next few months,” said Pratik Jain, partner and leader, indirect tax, PwC India.
Abhishek Jain, tax partner, EY, said the steady increase in average collection brought a gleam of hope for a regular monthly collection of Rs 1 trillion being met soon.
The compliance levels have gone up, with the number of GSTR 3-B returns filed till the end of month rising to 6.96 million. However, the November figures bolster the possibility that the October collection crossed the Rs 1 trillion mark owing to the impact of the festival season.
IGST collection fell below Rs 500 billion after two months, in November. The degree of regular settlement of the IGST has, however, increased, with Rs 335 billion settled on a regular basis, the Rs t ever. After the IGST settlement, the accrual as the CGST
and the SGST is Rs 351 billion and Rs 388 billion, respectively.