IGST Mop-up from Im­ports Crosses ₹ 20,000 Cr in July

To­tal cus­toms rev­enues rise to ₹ 26,500 cr as roll­out of the new tax regime com­pletes a month

The Economic Times - - Economy: Macro, Micro & More - Deepshikha.Sikar­war @times­group.com

New Delhi: The col­lec­tion of In­te­grated Goods and Ser­vices Tax from im­ports crossed ₹ 20,000 crore in July — the first month of the roll out of the new in­di­rect tax regime, point­ing to­wards a ma­jor jump in rev­enues. To­tal cus­toms rev­enues in July 2017 stood at ₹ 26,500 crore as against ₹ 16,625 crore col­lected in July 2016.

Col­lec­tions have been quite ro­bust,” a gov­ern­ment of­fi­cial said.

How­ever, the of­fi­cial said IGST col­lec­tions have also re­ceived a boost from the fact that there is a com­po­nent of state GST as well in the tax.

Be­sides, the gov­ern­ment has done away with a num­ber of coun­ter­vail­ing duty (CVD) ex­emp­tions and not ex­tended them un­der the GST regime that were avail­able in the pre­vi­ous tax

regime, such as that on some elec­tronic prod­ucts.

The rise in cus­toms rev­enues on im­ports should take care of any de­cline in GST col­lec­tions be­cause of any pro­duc­tion-re­lated dis­rup­tion af­ter the roll­out of the new regime.

Over­all GST trends would be avail­able only in Au­gust when the fi­nal tax col­lec­tion num­bers for July are col­lated.

There is ap­pre­hen­sions that rev­enues may take a hit be­cause of slug­gish sales across the coun­try in the first month of GST. Cen­tral Board of Ex­cise and Cus­toms would carry out a de­tailed anal­y­sis of the ini­tial trends when the fi­nal num­bers be­come avail­able.

In­dia rolled out GST, which re­places 17 cen­tral and state taxes such as cen­tral ex­cise duty, ser­vice tax, value added tax and 23 cesses, from July 1.

IGST col­lec­tions are first rev­enue trends on the new tax as also in­di­ca­tion of the largely smooth roll­out. IGST be­come payable from June 30 mid­night on all goods en­ter­ing the coun­try, bar­ring the ex­empted ones.

IGST on im­ports re­places coun­ter­vail­ing duty and is levied in lieu of state GST and Cen­tral GST, but over and above ba­sic cus­toms duty. IGST is equal to the sum of Cen­tral GST and State GST levied on any prod­uct in the coun­try. GST has sub­sumed coun­ter­vail­ing duty, which was levied in lieu of cen­tral ex­cise duty, and spe­cial ad­di­tional duty on im­ports.

In­dia have recorded above nor­mal rain­fall so far

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