Call of duty: GST collections begin FY19 on a strong note
Goods and Services Tax (GST) collections in May amounted to Rs 94,016 crore, down from April’s record Rs 1.03 lakh crore but well above the monthly average since the tax was rolled out on July 1 last year, indicating the levy was stabilising and compliance was rising.
Finance secretary Hasmukh Adhia said the May GST collection was higher than the monthly average of Rs 89,885 crore in FY18. “This reflects better compliance after introduction of e-way bills,” tweeted Adhia, who is also the revenue secretary.
The GST Council had introduced electronic way bills or e-way bills on April 1 for the movement of goods within states to clamp down on evasion. They are required for transport of goods over Rs 50,000.
The May collection shows the economy may be recovering from GST implementation blues, experts said. “The growth in the economy in the January-March quarter has been robust and is indicative of the fact that the initial hiccups in GST implementation are now largely behind us,” said Atul Gupta, senior director, Deloitte India.
India’s GDP growth beat expectations to clock 7.7% in the fourth quarter of FY18, according to official data released on Thursday.