GST Receipts Rebound in December

Goods and services tax receipts rose in December 2017, reversing the decline seen in the previous two months. The government expects collections to improve in the coming months as measures to raise compliance have begun to show results.

The total collections for December rose to ₹86,703 crore, as on January 24, the finance ministry said in a post on microblogging site Twitter. GST receipts had slipped to ₹80,808 crore in November from more than ₹83,000 crore in October and over ₹92,000 crore in September.

Under the fully integrated nationwide e-way bill system, interstate movement of all taxable goods will be closely monitored.

The receipts rose in December despite the cut in tax rates on 178 goods from 28% as also restaurants to 5% in November, indicating greater compliance.

The economic recovery in the past few months could also have contributed to higher GST receipts. Fast moving consumer goods maker Hindustan Unilever reported 11% volume growth in the October-December quarter from a year ago. Auto sales have also been strong.

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