Gross Goods and Services Tax (GST) revenues in May 2022 rose 44% from a year earlier to ₹1,40,885 crore, with receipts from domestic transactions and services imports rising at a matching pace, while goods imports yielded 43% higher taxes.
How is it a big achievement?
- This is only the fourth time the monthly GST collection crossed ₹1.4 lakh crore mark since the inception of GST and the third month at a stretch since March 2022.
- Revenue growth from domestic transactions, including imports of services, outpaced revenues from goods imports after several months in May.
- Of the total revenue in May, Central GST collections were ₹25,036 crore, State GST ₹32,001 crore, and Integrated GST ₹73,345 crore, which included ₹37,469 crore from import of goods.
- GST Compensation Cess inflows, used to recompense States, amounted to ₹10,502 crore, including ₹931 crore from goods import.
- Revenue growth was buoyant across most States. As many as 20 States and Union Territories saw revenues rise faster than the 44% national average, including the major industrial States of Karnataka (60%), Maharashtra (50%) and Gujarat (46%).
About the Goods and Services Tax –
- It is a destination-based taxation system.
- It has been established by the 101st Constitutional Amendment Act.
- It is an indirect tax for the whole country on the lines of “One Nation One Tax” to make India a unified market.
- It is a single tax on supply of Goods and Services in its entire product cycle or life cycle i.e. from manufacturer to the consumer.
- It is calculated only in the “Value addition” at any stage of a goods or services.
- The final consumer pays only his part of the tax and not the entire supply chain which was the case earlier.
- There is a provision of GST Council to decide upon any matter related to GST whose chairman in the Finance Minister of India.