The Central Ministry of Finance has said that the recent rise in GST revenue is the result of various policy and administrative measures taken in the past to improve compliance.

In India, total Goods and services Tax (GST) income for november (for October) progressed by 25.3 % year-on-year to Rs 1,31,526 crore. 

This is the second-highest revenue collection under GST since the introduction of GST in July 2017. 

The GST tax hike has two specific stimuli: an increase in economic activity with multiple compliance measures and greater monitoring by tax authorities. 

These compliance measures include auto-filing of income, prevention of e-way bills and provision of input tax credit to non-taxpayers as a measure taken by the tax authorities to prevent tax evasion.

GST collection in april this year was Rs 1,41,384 crore.

How much is GST collection?

The total GST revenue collected in november was Rs 1,31,526 crore, of which CGST - the tax levied on both central government goods and services - was Rs. 23,978 crore SGST - including tax levied on interstate distributions. 

Taxes levied by the states on both goods and services - Rs 31,127 crore IGST - the tax on all interstate goods and services - Rs 66,815 crore (including Rs 32,165 crore levied on imports of goods) and Rs. 9,606 crore (including Rs. 653 crores collected from imports). 

The government has paid Rs 27,273 crore as regular compensation from IGST to CGST and Rs 22,655 crore to SGST.

 After the regular settlements in november 2021, the total revenue of the Central and State CGs will be Rs. Rs. 51,251 crore and Rs. 53,782 crore. 

As of november 3, the central government has provided Rs 17,000 crore as GST compensation to the States / Union Territories.

What does this trend mean?

GST revenues have accelerated and recorded a growth of 25.3 per cent year-on-year. 2019-20 is a 27 per cent increase over the pre-epidemic period. Tax authorities are taking drastic compliance measures to improve compliance.

According to the Finance Ministry, the recent rise in GST revenue is a result of various policy and administrative measures taken in the past to improve compliance.

 “Mainly fake invoice cases are detected with the help of various information technology tools developed by GSTN using suspicious taxpayer return, invoice and e-way bill data. 

"Over the past year, there have been numerous efforts to improve computer capabilities, prevent tax evaders after the GST tax filing deadline, automatically increase revenue, prevent e-way bills and provide input tax credit. 

Non-filers have made steady progress in filing income over the past few months, ”the Federal Ministry of Finance said.

How has this trend been in recent months? What does the future hold?

Total GST revenue crossed Rs 1.30 lakh crore for the second consecutive month. november revenue was 25 per cent higher than GST revenue in the same month last year and 27 per cent higher than 2019-20. 

Of the GST collected in the respective states, states like maharashtra recorded 24 per cent growth in GST revenue in november, karnataka 31 per cent growth, gujarat 26 per cent growth and tamil Nadu 10 per cent growth.

According to tax experts, the increase in GST revenue is due to a significant increase in the economic recovery and monitoring activities of the tax authorities. An increase in GST revenue will help the government surpass its budget targets.

Moreover, the collection is currently stable enough to help surpass the GST revenue targets for this financial year. 

There has been a significant increase in GST monitoring activities in recent times based on the data available with GSTN; These would have contributed to increased revenue, rather than economic growth.