GST revenue hits a record high in March

GST revenue hits a record high in March

1. Goods and Services Tax (GST) collection in March rose 15.6% from a year ago to hit Rs 1.06 lakh crore. It is the highest collection since the new indirect tax system took effect on July 1,2017.
2. However, it is still short of the Union government’s target for the current fiscal (2018-19). The Centre had estimated the GST collections to be Rs 5.03 lakh crore for 2018-’19 but the gross central GST collection is at Rs 4.25 lakh crore. There is a deficit of Rs 78,000.
3. According to experts, the growth in GST collections could be due to (a) reconciliation by businesses of outward and inward supplies (b)intelligent data analytics (c)tax leakage detection and (d)consequent GST payment by businesses.
4. GST (Goods and Services Tax) is an indirect tax that has replaced many Central and State taxes like excise duty, VAT and service tax. It is a single comprehensive tax levied on all goods and services produced in India as well as those imported from other countries.