The total gross revenue of Goods and Services Tax (GST) collected in the month of August 2018 is Rs. 93,960, marginally lower than the previous month July 2018.
The GST revenue for August 2018 collections are shared to the following departments as follows – CGST is Rs. 15,303 crore, SGST is Rs. 21,154 crore, IGST is Rs. 49,876 crore and Cess is Rs. 7,628 crore. The values are included collections on imports also.
The finance department witnessed a slighter dip in August collections compared to July and June months collections Rs. 96,483 crore and Rs. 95,610 crore respectively. This is depicted in the below chat for the current year.
The dip in tax revenues caused probably due to the 28th meeting of GST council happened on 21st July for which the council recommended tax reduction on several goods and services while the notification of reduced rates came into effect only from 27th July. As part of the meeting, GST council decided to bring down the tax on Sanitary Napkins, Rakhis, Stone/Marble/Wood deities etc., to NIL from 18%, 12%, 5%. Along with these reductions, GST rates on 28% items are reduced to 18% for Paints and varnishes, Refrigerators, washing machines, vacuum cleaners, Televisions up to the size of 68 cm, domestic heaters and electrical appliances etc.
Since it has taken some time for the market to get benefit from the reduced tax on items, consumers would have postponed their decision to but expecting the reduction on taxes and prices. Of course, the actual impact of reduction in GST revenue collections would be observed only from next month onwards as the tax rate reduction would have got affected only in last few days of the month.
Considering the dip, revenue department now closely look on to detect several GST fraud entities to improve the results in collections.