GST collections in Kerala increased by 29% in October

Nov 4, 2022 | GST FAQ, News | 0 comments

GST collections in Kerala increased by 29% in October

 

The growth trend in Goods and Services Tax (GST) revenues has continued in October also for Kerala, with the State reporting a 29% growth over October 2021. But experts also feel that the collection should have been higher in October given the perceived surge in spending during the post-COVID Onam festival season.

Collection for October pertains to the consumption of goods and services in September, the month in which the Onam festival fell. Data released by the Union Finance Ministry on Tuesday pegged the October collection in Kerala at ₹2,485 crore compared to ₹1,932 crore in October 2021.

While a 29% growth is impressive, Kerala has been recording a steady GST revenue growth with the easing of the pandemic, a State Finance Department official said. Union Finance Ministry figures also show that the year-on-year growth has been consistently above the 25% mark since May.

‘Not a great show’

K.J. Joseph, director, Gulati Institute of Finance and Taxation (GIFT), feels that the collection should have been at least 10% higher. ‘’I won’t consider it a great performance (October collection) for two reasons: it does not reflect the festival market. Second, this was a period where there was an increase in prices. That too should naturally have been reflected in the tax collection. This should open the eyes of tax administrators,’‘ he said.

Revamp on in dept.

The month of May recorded an 80% increase over May 2021, and June, 116%, over the previous June. July recorded 29% growth, August 26%, and September 27%. The State GST department is currently undergoing a revamp, with the Cabinet giving the nod for it in July. The primary aim of the restructuring exercise is to usher in more efficiency in tax collection, plugging loopholes and strengthening auditing. 

Source From = https://www.thehindu.com/news/national/kerala/kerala-records-29-growth-in-gst-collection-in-october/article66086557.ece

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