New Delhi: The Delhi government has reported a surge in the GST collection in the first quarter of this fiscal, showing strong growth in consumption and increasing demand after a pandemic break.
Note Rs 5,281 Crore GST was collected from April to June, although most of the first quarter was spent under the locking and economic restrictions.
In the period in accordance with the last financial year, when the country was also under the locking and economic restrictions, the GST collection was only Rs 2,943 Crore, said a Delhi government official.
The difference between Rs 2,338 Crore shows people consuming more goods compared to last year.
However, the number of GST receipts is not available a month.
The source said usually GST revenue in April was higher than the other months since April also reflected transactions carried out in March.
Because GST is a consumption-based tax, its growth reflects strong purchasing power in the economy.
A senior tax official said the sustainable economic recovery played an important role for a high GST collection.
The government has become financially paralyzed because Covid-19, therefore has focused on checking false bills, improving leakage in the system and improving tax administration.
This produces timely tax payments.
Another factor is the launch of archiving back quarterly and monthly payment of the tax scheme for small taxpayers.
Because of this, the dealer saves taxes from January to March in April.
This scheme offers traders with turnover up to RS 5 Crore selection of submission of GSTR-1 and GSTR-3B back every quarter.
Chartered Accountant RK Gupta said the last fiscal trader with turnover up to RS 1.5 Crore was not needed to submit a system harmonization system of nomenclature (HSN), which was used to classify goods.
However, since the beginning of this financial year, it has become mandatory for all traders to submit details of the HSN code.
“The government now has large data data to help tax monitoring,” he added.
In 2020 as well, the largest component of Delhi government revenue – State goods and service tax – grew consistently in the first four months (April to July) financial years and continued to remain above the 1,200 crore RS every August August and so on.
The Chamber of Commerce and Industry Convener Brijesh Goyal, who is also an official Wing Trade Party AAM AADMI, said this fiscal GST collection was higher because last year’s locking came as a surprise for people and they controlled their expenses.
“This year, the lock is not national, but still specific.
So, people continue to spend.
Also, inter-country trips are not prohibited like 2020,” Goyal added.