Despite an increase in tax returns filed, India's GST collection in December dipped to nearly ₹950 billion

Revenue collection under the Goods and Services Tax (GST) fell for the second straight month to Rs 94,726 crore in December from ₹976.37 billion collected in November despite a rise in the number of tax returns filed.

The Finance Ministry on Tuesday said a total of 7.24 million GSTR-3B returns were filed till December 31, up from 6.96 million filed in November, bringing in Rs 16,442 crore as Central GST (CGST), ₹224.59 billion as State GST (SGST), ₹479.36 billion as Integrated GST (IGST) and ₹78.88 billion as Cess.

The revenue collected in December relates to transactions made in November.

The GST collections had breached the 1-trillion-mark in October (for September) when it stood at ₹1.00710 trillion, after which it slided to ₹976.37 billion in November (for October).

The revenue collection is expected to slide further in coming months as the GST Council in its December 22 meeting decided to cut tax on 17 items and six services including computer monitors, TV screens, video games, lithium-ion power banks, retreaded tyres, wheelchairs and cinema tickets.

Finance Minister Arun Jaitley had said after the meeting that the tax cuts would have a revenue impact of Rs 5,500 crore for the full fiscal. The new reduced rates come into effect from Tuesday.

"The government has settled ₹184.09 billion to CGST and ₹147.93 billion to SGST from IGST as regular settlement. Further, ₹180 billion has been settled from the balance IGST available with the Centre on provisional basis in the ratio of 50:50 between the Centre and the states," a Finance Ministry statement said.

"The total revenue earned by the Central government and the state governments after regular settlement in the month of December is ₹438.51 billion for CGST and ₹462.52 billion for the SGST," it added.
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