GST Collection may Grow 18% in FY20: Govt.
04, Feb 2019
Prelims level : Economy Mains level : Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
- The Union government has projected over 18% growth in Goods and Services Tax (GST) collections in 2019-20 based on the rising trend in revenue mop-up witnessed during the three-month period ending January 2019.
- The central government plans to collect over ₹61 lakh crore in Goods and Services Tax (GST) next fiscal as against the revised estimate of over ₹6.43 lakh crore to be collected in the current financial year ending March. This translates into an 18 per cent growth in mop up.
Reason for optimistic Estimate:
- During the last one-and-half years, a series of measures, both in rate rationalization and processes, have been undertaken. The changes made to the GST system will hopefully lead to consolidation next year, which in turn will result in higher revenue
- GST has resulted in an increased tax base, higher collections, and ease of trade, adding that with the introduction of the GST, inter-state movement of goods has become faster, more efficient, and hassle free with no entry tax, check posts, and truck queues.
- Last fiscal our average collection was ₹89,000 crore. This fiscal it is averaging ₹97,000 crore. So, the revenue trend is on upward scale. If one compares November, December, January of 2017-18 with that of 2018-19, one can see a 14 per cent increase.