Puducherry

GST collections show sharp rise in the first four months of current fiscal in U.T.

Trading activity has increased in the Union Territory, resulting in tax buoyancy after months of COVID-19- induced economic slowdown.

Trading activity has increased in the Union Territory, resulting in tax buoyancy after months of COVID-19- induced economic slowdown. | Photo Credit: S.S. Kumar

The Union Territory has witnessed a rebound in the economic activity in the first four months of the current fiscal with the Goods and Services Tax (GST) collections registering a considerable improvement in the April to July period, compared to the corresponding months in the previous financial year.

Continuing the momentum, recorded in tax collection in 2021-22 in the Union Territory, GST collections logged a major jump in the first four months of this fiscal. The revenue proceeds from Central GST (CGST) has gone up to ₹243 crore till July 2022, compared to ₹164 crore collected up to July in 2021. The CGST collection has shown an increase of 48%, an official with CGST office here told The Hindu.

Likewise, State GST (SGST) collections were to the tune of ₹398 crore till July this fiscal, up from ₹247 crore collected during the corresponding period of the previous fiscal. The increase in collection was 61.1%. Officials said that the GST collection in the last four months was much higher than the national increase of 28% for the same period over the previous year.

The Union Territory had netted a revenue of ₹1,556 crore (₹601 crore from CGST and ₹955 crore SGST) in 2021-22. Revenue mobilisation during peak COVID-19 in 2020-21 was less as anticipated, said an official adding that Union Territory could only mobilise GST collection of ₹1,310 crore, of which SGST was ₹773 crore and CGST was ₹537 crore.

According to data available with the Commercial Taxes Department, the region had a total GST collection of ₹1,823.17 crore, which included SGST, CGST, Integrated GST and Cess, during 2021-22. The total GST collection was ₹1,645. 66 crore in 2020-21 and ₹1,869 crore in 2019-20, data revealed. “Going by the current trend, the total GST collection of the Union Territory may go beyond the figures achieved in 2019-20,” said an official in the tax wing. While as many as 15,030 tax payers were under the net of SGST department, around 8,000 entrepreneurs come under purview CGST, the official added.

Commenting on the GST data for the Union Territory, a member of Puducherry-chapter of Confederation of Indian Industry said, “Certainly, the economic activity has improved in the last few months. Firms involved in pharma production, auto-mobile spare parts, plastic products and steel have comparatively made good turnover.”

In the case of plastic industry, the industrialist said there was higher turnover from increased raw material costs, leading to higher selling price for the same volume of job. Increase in raw material prices were up to 50%. Tax compliance had also improved, he said.

When contacted, Joint Commissioner of of CGST and Central Excise, M. Sathish Kumar said there had been a substantial improvement in economic activity. “In the tax collection front, we have done much better so we have set an ambitious target of ₹800 crore from CGST in the Union Territory for the current financial year. Going by the trend witnessed in the last four months, we are hopeful of achieving the target,” he said.

The compliance level has improved due to the strict enforcement of policy decisions of the Central Board of Excise and Customs. Stern action was being initiated against those who defaulted for a consecutive six months, he added. Setting up of a separate wing– Directorate of Analysis and Risk Management– and use of artificial intelligence have played a crucial role in better compliance and tax remittance. “Our enforcement revenue (collected from defaulters) in the last four months has gone up to ₹7.37 crore, compared to ₹6.23 crore in the corresponding period last year,” he said.


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Printable version | Aug 4, 2022 12:36:59 am | https://www.thehindu.com/news/cities/puducherry/gst-collections-show-sharp-rise-in-the-first-four-months-of-current-fiscal-in-ut/article65721110.ece