New Delhi: Finance Minister Piyush Goyal has exuded confidence that GST revenues will go up in the coming months on improved compliance and market demand.
The mop up from Goods and Services Tax (GST) increased to Rs 96,483 crore in July from Rs 95,610 crore in the previous month, as more number of people filed returns.
Goyal said revenue collections are ‘within our target so far’ and festive season would help increase demand in the market going forward.
‘So I think considering that we have very good collection on GST and given the buoyancy in the market that we expect after the major changes that have been carried out, both compliance will improve in GST, market demand will increase and our own sense is that we will not have any revenue shortfalls.
“On the contrary we are expecting to see revenue buoyancy and better revenues coming into days ahead,” Goyal said.
Following GST rate cut on 88 items with effect from 27 July, there have been apprehensions about pressure on government revenues. The items on which tax rates have been cut include washing machine, mixer grinder, fridge, as well as footwear up to Rs 1,000, paints and varnishes and sanitary napkins.
Also making compliance easy for small tax payers, the GST Council has allowed businesses with turnover of up to Rs 5 crore to file tax returns quarterly. Earlier this limit was fixed at Rs 1.5 crore.
Refunds cleared till July
The Finance Ministry also added that GST refund claims of Rs 54,378 crore of exporters have been cleared by the Centre and State tax officials till July end.
As of 31 July, the total amount of Integrated GST (IGST) refund claims disposed by CBIC is Rs 29,829 crore, taking the disposal rate to 93 per cent. Besides, Rs 24,549 crore has been paid on account of Input Tax Credit (ITC) to exporters who claimed refund by filing RFD-01A.
Of this, the Central Board of Indirect Taxes and Customs (CBIC) has cleared Rs 16,074 crore, while the State authorities have refunded Rs 8,475 crore.
“The CBIC has successfully concluded the Third Refund Fortnight from July 16-31, 2018. Till July 31, 2018, the total GST refunds disposed by the Centre and the States are to the tune of Rs 54,378 crore” the Finance Ministry said.
During the third refund fortnight, the IGST refunds of amount Rs 3,391 crore have been sanctioned by CBIC.
“The remaining GST refunds pending with CBIC will continue to be processed expeditiously. However, the exporters are requested to ensure that the correct procedure of filing returns, giving accurate information in Shipping Bill and submitting RFD01A Application Forms to the jurisdictional formations are followed for quick disbursal of their GST refund claims,” the Ministry added.
GST, which has subsumed about 17 local taxes, was rolled out on 1 July, 2017.