GST: Government's earnings increased as customers spent, Finance Ministry said- better compliance of rules also increased

Posted on 2nd Dec 2022 by rohit kumar

The government's earnings in the form of GST increased by 11 percent year-on-year in November on the back of better compliance and increased festive spending by customers. This is the ninth consecutive month since March this year when the collection has been more than 1.40 lakh crore.

 

 

According to the Finance Ministry data released on Thursday, the Central GST (CGST) contributed Rs 25,681 crore to the total collection of Rs 1,45,867 crore. State GST (SGST) accounted for Rs 32,651 crore and Integrated GST (IGST) for Rs 77,103 crore. Rs 38,635 crore in IGST was collected from duties on imported goods. Of the total GST collection, Rs 10,433 crore (including Rs 817 crore collected from the import of goods) was raised through cess. Abhishek Jain, Partner (Indirect Taxes), KPMG, says that continued festive purchases, wedding season, and reconciliation of input tax credits at the end of the year have played an important role in increasing GST collections.

 

So far: Rs 11.91 lakh crore earned

Vivek Jalan, Partner, Tax Connect Advisory said, GST revenue is estimated to be 7.8 lakh crore in the budget of 2022-23. In this, there is an estimate of 6.6 lakh crore central GST and 1.2 lakh crore compensation cess. This means that the GST collection will be close to Rs 14.4 lakh crore.

 

Jalan says that if we look at the figures, the government has already received Rs 11.91 lakh crore in the form of GST collection till November.

 

Even if the GST collection remains at five lakh crore in the next four months, it will exceed the target by Rs 2.5 lakh crore, which will be 17% more than the budget estimate.

 

manufacturing activities reached a three-month high

Manufacturing activity rose to a three-month high in November on easing cost pressures from lower inflation, new orders, and a pick-up in exports. The S&P Global India Manufacturing Purchasing Managers' Index (PMI) rose to 55.7 last month. It was 55.3 in October.

 

Operations improve for 17th consecutive month: Pauliana De Lima, Joint Director of Economics at S&P Global Market Intelligence, said November PMI data showed overall operating conditions improved for the 17th consecutive month. The number of new orders and exports has increased in recent months.

 

Cost inflation lowest in 28 months, increased employment

On the prices front, Lima said cost-linked inflation was the weakest in 28 months. Prices have risen at the slowest pace since February. On the other hand, November was also a good month from the point of view of employment. There has also been strong growth in employment for the ninth consecutive month.

 

Sales of petrol and diesel in double digits

Petrol and diesel sales in the country grew in double digits year-on-year in November on rising demand from the agriculture sector. Petrol sales rose 11.7 percent to 2.66 million tonnes last month, according to preliminary data from the petroleum industry on Thursday. Last year, 23.8 lakh tonnes were consumed in the same month.

 

Diesel sales increased by 27.6 percent to reach 7.32 million tonnes. Compared to November 2020, consumption was 17.4 percent higher and 9.4 percent higher than pre-Covid i.e. 2019.

 

Electricity consumption: increased by 14 percent to 112.81 billion units

Electricity consumption increased by 13.6 percent year-on-year to reach 112.81 billion units in November. Consumption was 99.32 billion units in November last year and 96.88 billion units in August 2020. There has been a rapid increase in the consumption of electricity in economic and agricultural activities.

 

Also Read: GDP Data: The pace of growth of the Indian economy slowed down, GDP was 6.3 percent in the second quarter of 2022-23