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Tax collection under the Goods and Services Tax (GST) was lower at ₹83,346 crore in October, against a mop-up of over ₹90,000 crore in September.
The total collection stood at ₹83,346 crore till November 27 for the month of October and 50.1 lakh returns were filed for the month, the Finance Ministry said on Monday.
This is marginally lower than ₹92,150 crore collected in September.
The Ministry attributed the lower tax collection under GST and lesser compliance to delayed implementation of some of the main features such as invoice matching, E-way Bill and reverse charge mechanism.
“Because of the first time requirement of paying Integrated GST on transfer of goods from one State to another State even within the same company, there was an additional cash flow of IGST in the first three months,” it added.
The Centre collected ₹58,556 crore as Centre GST (C-GST) during the months of August, September, October and November.
The State GST (S-GST) component amounted to ₹87,238 crore for the four-month period.
“The major reason for the gap in income of C-GST and S-GST has been that more C-GST liability has been discharged using transition credit rather than by way of cash,” said the Ministry, adding that use of balance credit available with taxpayers from the previous tax regime also led to the disparity.
Additionally, States also received funds for inter-State trade, where a net amount was transferred from the I-GST account to the S-GST account whenever IGST collected for payment of SGST. For this, the Centre transferred ₹16,233 crore for August, September and October and ₹10,145 crore for November.
Similarly, States also received a compensation of ₹10,806 crore for July and August and another ₹13,695 crore for September and October.
“The revenue of States has been fully protected taking base year revenue as 2015-16 and providing for a projected revenue growth rate of 14 per cent,” said the Ministry.
Additionally, a settlement of ₹31,821 crore was released for the months of August, September and October and another ₹13,882 crore for November.
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