Highest GST Collection Ever Of Rs 1.24 Trillion. Why? – Free PDF Download

What has happened?

• Goods and Services Tax collections for December rose to Rs 1.24 lakh crore, the highest ever since the implementation of the nationwide tax in July 2017.
• ₹ 1,23,902 crore
• The previous monthly GST collection record was just short of Rs 1.2 lakh crore in January 2021.
• The ministry said that the GST revenues were above Rs 1 trillion for the last six months and a steep increasing trend over this period are clear indicators of rapid economic recovery post pandemic.
• Also, the collections were up 27 per cent when compared with the year-ago period.

Collection numbers

• CGST is Rs 22,973 crore,
• SGST is Rs 29,329 crore,
• IGST is Rs 62,842 crore
• (Including Rs 31,097 crore collected on import of goods) and Cess is Rs 8,757 crore Quarter wise The GST revenue witnessed growth rate of -41%, -8%, 8% and 14% in the first, second, third and fourth quarters of this financial year, respectively,
• As compared to the same period last year, clearly indicating the trend in recovery of GST revenues as well as the economy as a whole.

Reasons for this jump?

• Revenues from import of goods was 70% higher
• and the revenues from domestic transaction (including import of services) are 17% higher
• Than the revenues from these sources during the same month last year.

Greater transparency

• The trend indicates that the fruits of greater transparency in the reporting of economic activity, brought about by GST, is beginning to tell on revenue receipts sustainably.
• The authorities have in the last few months stepped up reporting requirements and have scaled back input tax credit availability to businesses,
• In cases where their suppliers have not uploaded details of the transaction details in a designated portal.

Fake invoices

• The government’s drive against fake invoices and rule changes meant to ensure that transaction details are reported in time by businesses.
• Also, the drive against fake invoices since mid-November have led to arrests of several chartered accountants and entities.

E-invoicing

• The compulsory e-invoicing system that started in January this year has plugged business-to-business (B2B) tax evasion to a great extent,
• As transactions above Rs.100 crore are mostly B2B, where correct invoicing is insisted upon by both buyers and sellers to avail input tax credits.
• Thus, increased use of technology has helped to ease compliance burden on the one hand and raised fear among unscrupulous elements on the other.
• The government made e-invoicing mandatory for businesses with an annual turnover of Rs.100 crore and above from January 1.
• The idea is to progressively make it compulsory for all.
• No significant B2B transaction is now possible below the GST radar as e-invoices require QR codes, which are generated from the GST Network (GSTN).

What is E-invoice under GST?

• Electronic Invoicing is an electronic authentication mechanism under GST.
• Under the mechanism, all the B2B invoices generated by a business will have to be authenticated on the GSTN portal, electronically.

Invoice Reference Number

• To manage these invoices, the Invoice Registration Portal (IRP) will issue a unique identification number for every invoice called as Invoice Reference Number (IRN).
• Along with it, a digitally signed QR code (Quick Response code) will be issued.
• Post issuance of the IRN and QR code, the uploaded invoice will attain validity and the status of a Government validated document.

Q) Which of the following tax has been abolished by the GST?

1. Corporation tax
2. Service tax
3. Wealth tax
4. Income tax

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