Ahmedabad: Inflationary pressure coupled with a surge in demand and consumption carried out by state goods and service tax collection (SGST) in Gujarat swelled 27% in January 2022.
The SGST collection in Gujarat grew from Rs 3,414 Crore in January 2021 to RS 4,369 Crore in January of the year this.
It is a 27% climb in a year, according to data on the State Commercial Tax Department.
Industrial players and tax professionals associate a collection of collections with inflationary pressure and costs in addition to streamline business procurement cycles.
“The industry has faced an increase in the cost of raw materials, thus production costs have increased dramatically,” said Pathik Patwari, senior vice president, the Gujarat Chamber of Commerce and Industry (GCCI).
“The price of clothing has increased and has other product prices.” Patwari added: “As a consequence of inflationary pressures, effective tax collection has increased.
Sectors such as chemicals, plastics, steel and cement have been affected by the worst.” Industrial players said the low basic effects play a role in tax collection dramatically improve .
“In December, tax collection was significantly low due to low demand,” said Patwari.
“Even last year in January, there were many restrictions throughout the state after a sharp increase in the case of Covid-19 after Diwali.” He continued by saying: “As a result, effective increase will be high.” GST Mop-up Gujarat, including Cess, stood at RS 8,616 Crore in January 2022, up 17% from RS 7,336 Crore in December 2021.
On a year-on-year basis, tax billing jumped 8% compared to RS 7,967 Crore on January 2021 .
Industrial players said the business processing downsizing contributed to higher tax collection.
“After Diwali, requests have been hit and consequently, the procurement of inventory has been jammed,” said Chintan Thaker, Chairperson, Assocham Gujarat State Council.