As GST glitches iron out, revenue collections set to rise: CBEC chief

The Economic Times By Joel Rebello, ET Bureau Mar 17, 2018, 08.09 AM IST

GST collections averaged more than Rs 90,000 crore a month during July-September, the first three months of the new indirect tax regime.

MUMBAI: Difficulties in the goods and services tax system such as filing of returns, e-way bills and revision of rates are being ironed out and revenue collections from the new levy will likely climb back to pre-November levels from April, Vanaja Sarna, chairman of the Central Board of Excise and Customs, said on Friday.

“The problems with the system started only when the returns were being filed after September. Utilities of the GST system were not on schedule and we had to make many changes allowing access to file collections. Now, the system is slowly settling and we should expect collections to rise from April,” Sarna said.

GST collections averaged more than Rs 90,000 crore a month during July-September, the first three months of the new indirect tax regime. Collections dropped to Rs 80,808 crore in November and recovered to Rs 86,703 crore in December, according to government data.

Sarna, head of the apex indirect tax collection body, said the cut in the tax rate on 177 items effective from November 15 had affected collections.

“The systems were also not ready, as a result of which some things had to be done manually.

We also had to introduce new columns – like for exporters to file corrective returns. All these things have slowed down collections,” Sarna said.

With the system now settling, collections are likely to rise above Rs 90,000 crore a month, Sarna said.

“We have not changed rates since November. The message from the ministry is that we need more enforcement, which we are concentrating on, along with audit,” Sarna said. The World Bank said in a report on Thursday that GST regime was one of the most complex, with the second-highest tax rate among 115 countries. India has GST slabs of 0%, 5%, 12%, 18% and 28%.

Sarna said glitches in the e-way bill will be fixed soon.

About UsAbout Us

Incorporated in year 2000, our journey began and progressed with providing Software Solutions for ‘e’ Compliances Read More...

Contact UsContact Us

Office- 110-114, 1st Floor Rattan Jyoti
Building 18, Rajendra Place, New Delhi-110008

(011) 45054050
We feel happy to talk

contact@webtel.in / contact@gstinindia.in
Write Your Message

Copyright 2016 © gstinindia.in | All Rights Reserved