The last month of fiscal year 2018-19 proved to be a bonanza for the Centre as the GST collection for March 2019 touched to Rs 1.06 trillion (lakh crore), marking the highest-ever tax collection in India.
As per government data, the average GST collection for financial year 2018-19 stood at Rs 98,114 crore, which is up by 9.2 percent compared to previous year. And the highest revenue for this year crossed the Rs 1 lakh crore record booked in April, October, and January and March scored a total of ₹1,06,577 crore. The total GST revenue includes CGST worth Rs 20,353 crore, SGST worth Rs 27,520 crore, IGST worth Rs 50,418 crore and cess costing Rs 8,286 crore from 75.95 lakh GSTR 3B returns in March 2019.
Hence, the collections show an overall 15.6 percent increase in March collection for this year, compared to previous year; and also became the highest-ever tax collection in the history of Indian taxation. Not just for the Centre, but the steep increase in GST collection is a positive sign for the economy as it shows possibility of “reconciliations by businesses of outward and inward supplies, intelligent data analytics-related tax leakage detections and consequent GST payment by businesses”, as stated by Abhishek Jain, tax partner of EY India.
The figures also show that businesses are leaning towards paying complete and timely tax and the trend is boosting each month since the introduction if GST last year – despite the technical and financial snags. Finance minister Arun Jaitley said that the March figures indicate an expansion in manufacturing and consumption. The revenue growth will also help the government in bridging the fiscal deficit and GDP downfall – saving the economy from a steep looming downfall, at least for now.