Jan GST mop-up to cross ₹1 lakh cr

NEWDELHI: Goods and services tax (GST) collections in January 2020 were set be close to the ₹1.1 lakh crore level, an amount that is likely to be the second highest monthly rake-in since the new indirect tax regime was launched in July 2017, according to two persons aware of the development who asked not to be named.

The highest monthly GST collection recorded yet was ₹1.13 lakh crore in April 2019.

January will be the third consecutive months to see GST collections above the benchmark ₹1 lakh crore level. But it will likely fall short of the revised target of ₹1.15 lakh crore, they said.

HT had earlier reported that officials estimated the ₹1.15 lakh crore target would be achieved, but it now appears the amount will be lower.

A finance ministry spokesperson declined to comment on the matter, saying the final collection figure will be available only after midnight on Friday. The government is expected to release the numbers on Saturday.

Earlier this month, at a highlevel meeting, the Department of Revenue raised the GST collection target to ₹1.15 lakh crore for January and February 2020 and ₹1.25 lakh crore for March 2020, the last month of the current financial year “with specific focus on stopping fraudulent input tax credit (ITC) claims”, a second official said.

Initially, the government had a target to achieve an average ₹1 lakh crore per month, but GST revenue slumped below that level for three consecutive months— August (₹98,202 crore), September (₹91,916 crore) and October (₹95,380 crore).

Indirect tax collection, which is a tax on consumption, bounced back to the ₹1 lakh crore mark again from November (₹1.03 lakh crore) and maintained almost the same level in the following month.