GST collections in May declined to Rs 940.16 billion from over Rs 1.03 trillion in April, the Finance Ministry said on Friday. As many as 6.247 million businesses filed their summary sales return GSTR-3B in the month of May.
The total gross GST revenue collected in May 2018 is Rs 940.16 billion, of which CGST is Rs 158.66 billion, SGST Rs 216.91 billion, IGST Rs 491.20 billion and cess Rs 73.39 billion, the ministry said.
“Though current month’s revenue collection is less compared to last month’s revenue, still the gross revenue collection in the month of May (Rs. 94,016 crore) is much higher than the monthly average of GST collection in the last financial year 2017-18 (Rs. 89,885 crore),” the ministry said in a statement.
Out of the total collection, Central GST (CGST) stood at Rs 15,866 crore, with states garnering Rs 21,691 crore in State GST (SGST). Around Rs 7,339 crore was received as cess with Rs 49,120 crore collected as Integrated GST (IGST), which is levied on inter-state supply of goods and services and is divided between states and the Centre. As on May 29, the Centre released Rs 6,696 cr to the states as compensation cess for the month of March.
The total GST compensation released to the states for the 2017-18 (July-Mar) was Rs 47,844 crore. The total revenue collection in May indicates domestic sales for the month of April. From 2018-19, the finance ministry shifted to a cash basis accounting system for GST, under which monthly collections are being reported on the first working day of the following month. As a result, tax collected on an actual basis from May 1-31 was released on June 1.
The government is targeting Rs1 trillion in GST collection every month and is hoping that anti-tax evasion measures, such as e-way bill, invoice matching and reverse charge mechanism (wherein a registered buyer would have to pay tax on behalf of an unregistered seller), will improve compliance.