News Brief
Record GST Collection In October Fueled By Economic Activity, Not Notices: CBIC Chairman Clarifies, Amid 13.4 Per Cent Surge
October witnessed a 13.4 per cent increase in GST revenue, reaching Rs 1.72 lakh crore.
The Central Board of Indirect Taxes and Customs (CBIC) has addressed the surge in Goods and Services Tax (GST) collections for the month of October, dispelling the notion that it was solely due to notices issued by tax authorities.
Sanjay Kumar Agarwal, who serves as the head of CBIC, emphasised that the growth in GST collections was primarily driven by increased economic activity across the country, as reported by Indian Express.
This clarification comes in response to concerns that the increase in collections was solely due to notices sent to certain sectors, particularly online gaming companies.
Agarwal further explained that the notices sent to online gaming companies were issued because the statutory time limitation for fiscal year 2017-18 was coming to an end, and they were not the primary cause of the revenue boost.
He emphasised that the growth in GST collections has been attributed to the country's economic activities, indicating a healthy and robust economic landscape.
It is worth noting that October witnessed a 13.4 per cent increase in GST revenue, reaching Rs 1.72 lakh crore.
This marked the second-highest collection since the implementation of the GST regime.
The highest collection was recorded in April, with GST revenue reaching Rs 1.87 lakh crore.
Agarwal pointed out that there was a significant rise in GST revenue from Integrated GST on imports, primarily due to a surge in import volumes.
This could be a result of companies replenishing their stocks and inventories to meet rising demands or due to the approaching festive season.
Additionally, Agarwal discussed the department's approach to e-invoicing. He highlighted the requirement for businesses with an annual turnover of over Rs 5 crore to issue e-invoices starting from 1 August.
While acknowledging the legal requirement, he expressed that compliance levels for e-invoicing among eligible taxpayers were not very high.
To address this, the department plans to send advisories to businesses, encouraging them to adopt e-invoices for business-to-business transactions.
The CBIC has phased in e-invoicing requirements for businesses, beginning with large companies with turnovers exceeding Rs 500 crore and subsequently lowering the threshold to Rs 5 crore over a three-year period.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest
