Sunday, August 2, 2020

GST important facts and GST revenue collection analysis



Any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption .(Article 366 (12A)).

S. No.







Includes all materials, commodities, and articles [Pre Existing Definition]




Anything other than goods [Introduced vide 101st Constitutional Amendment Act]




With reference to articles 246A, 268, 269,269A and Article 279A includes a Union territory with Legislature. [Introduced vide 101st Constitutional Amendment Act]

“Goods and Services tax” law while having unique principles, has significant elements of prior Central and State laws; and is also inspired by VAT/GST legislation of EU, Australia, Malaysia etc. along with International VAT/GST guidelines of OECD.

GST Law from a Constitutional Perspective-

  • Bill passed by Rajya Sabha on 03.08.2016 & Lok Sabha on 08.08.2016 
  •  Notified as Constitution (101st Amendment ) Act, 2016 on 08.09.2016 
  •  Key Features: 
  •  Concurrent jurisdiction for levy & collection of GST by the Centre & the States – Article 246A
  •  Centre to levy & collect IGST on supplies in the course of inter-State trade or commerce including imports – Article 269A 
  •  Compensation for loss of revenue to States for five years on recommendation of GST Council – Clause 19  GST on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas & aviation turbine fuel to be levied from a later date on recommendations of GST Council.

Goods out GST (fully or partially):-

Alcohol for human consumption

Power to tax remains with the State

Five petroleum products – Crude oil , Diesel, Petrol, Natural gas and Aviation Turbine Fuel.

GST Council to decide the date from which GST will be applicable


Part of GST but power to levy additional excise duty with Central Government

Entertainment tax levied by local bodies

Power to tax remains with local bodies

GST Council – Constitution (Article 279A of the Constitution) :-
  • Chairperson – Union Finance Minister
  •  Vice Chairperson - to be chosen amongst the Ministers of State Government
  •  Members - MOS (Finance) and all Ministers of Finance / Taxation of each State
  •  Quorum is 50% of total members 
  •  Decision by 75% majority
  •  States - 2/3 weightage and Centre - 1/3 weightage 
  •  Council to make recommendations on everything related to GST including laws, rules and rates etc.

GST collection analysis -

Gross GST revenue collected in the month of July, 2020 - ₹ 87,422 crore
Out of which -
CGST is ₹ 16,147crore
SGST is ₹ 21,418 crore
IGST is ₹ 42,592 crore (including ₹ 20,324 crore collected on import of goods)
Cess is ₹7,265 crore (including ₹ 807crore collected on import of goods)

Regular settlement from IGST
 ₹ 23,320 crore to CGST , ₹ 18,838 crore to SGST
The total revenue earned by Central Government after regular settlement- ₹ 39,467 crore for CGST.
The total revenue earned by State Government after regular settlement- ₹ 40,256 crore for the SGST.

Gross GST revenue collected in July ,2019 - ₹ 1,02,082 crore.

The revenues for the month July 2020 are 86% of the GST revenues in July 2019.

Gross GST collection in July ,2020 is less than June ,2020 due to fresh lockdown due to Covid -19 in few states in July,2020. 

Source -GST Council & PIB

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