The collections under GST in July exceeded the Union and state governments’ target, even though 36 per cent of the assessees did not file the returns.
The governments have earned Rs 92,283 crore, as against the target of Rs 91,000 crore.
As per the targets set in the annual Budget, the central government’s July tax revenue should have been Rs 48,000 crore. Assuming 14 per cent growth each in 2016-17 and 2017-18 over the 2015-16 revenues of the states, their tax kitty should have been more than Rs 43,000 crore for the month.
The growth rate is taken in accordance with a formula of compensating loss-making states. Thus, the combined kitty comes to Rs 91,000 crore.
Union Finance Minister Arun Jaitley said: “We have crossed the red line so far as tax targets are concerned.”
With regard to GST collections impacting the fiscal deficit target, he said, “It is too early to comment”.
Explaining the reason, he said now that the internal estimate had been breached in the first month of the GST roll-out, it meant that many businesses that were otherwise not paying taxes were coming into the net.