 "Rs 330 bn in IGST pool apportioned between Centre and states in November")
As much as Rs 330 billion lying in the integrated goods and services tax (IGST) pool has been apportioned between the centre and states in November.
The states' share would be over Rs 160 billion, the official told PTI.
The apportionment would add to the goods and services tax (GST) revenue of both the centre and states for November. The total revenue collection figures for the month would be released on Saturday.
This is the sixth time that IGST funds have been divided between the centre and states.
As much as Rs 320 billion was settled in October, Rs 290 billion was settled in September, Rs 120 billion in August, Rs 500 billion in June and Rs 350 billion in February this year.
When some substantial amount accrues to IGST pool, it is apportioned between the centre and states so that it does not lie idle with the centre, the official said, adding Rs 320 billion had been apportioned this month.
Under GST, the tax levied on consumption of goods or rendering of service is split 50:50 between the centre and the state. Such tax is known as central GST (CGST) and state GST (SGST).
On inter-state movement of goods as well as imports, an IGST is levied, which accrues to the centre. A cess is levied on top of these taxes on sin and luxury goods which make up for the compensation kitty used to make good of any revenue shortfall faced by states on implementation of GST.
Ideally, there should be ‘nil' balance in the IGST pool since the amount should be used for payment of CGST and SGST.
As some businesses are ineligible to claim the benefits of input tax credit (ITC), the balance gets accumulated in the IGST pool.
The finance ministry has targeted monthly GST collections to be Rs 1 trillion for this fiscal, but the actual mop-up has fallen short of the target month after month. The sole exception was the month of April and October in which the numbers exceeded Rs 1 trillion.
The collections stood at Rs 1.03 trillion in April, Rs 940.16 billion in May, Rs 956.10 billion in June, Rs 964.83 billion in July, Rs 939.60 billion in August, Rs 944.42 crorebillion in September and Rs 1 trillion in October.
The states' share would be over Rs 160 billion, the official told PTI.
The apportionment would add to the goods and services tax (GST) revenue of both the centre and states for November. The total revenue collection figures for the month would be released on Saturday.
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As much as Rs 320 billion was settled in October, Rs 290 billion was settled in September, Rs 120 billion in August, Rs 500 billion in June and Rs 350 billion in February this year.
When some substantial amount accrues to IGST pool, it is apportioned between the centre and states so that it does not lie idle with the centre, the official said, adding Rs 320 billion had been apportioned this month.
Under GST, the tax levied on consumption of goods or rendering of service is split 50:50 between the centre and the state. Such tax is known as central GST (CGST) and state GST (SGST).
On inter-state movement of goods as well as imports, an IGST is levied, which accrues to the centre. A cess is levied on top of these taxes on sin and luxury goods which make up for the compensation kitty used to make good of any revenue shortfall faced by states on implementation of GST.
Ideally, there should be ‘nil' balance in the IGST pool since the amount should be used for payment of CGST and SGST.
As some businesses are ineligible to claim the benefits of input tax credit (ITC), the balance gets accumulated in the IGST pool.
The finance ministry has targeted monthly GST collections to be Rs 1 trillion for this fiscal, but the actual mop-up has fallen short of the target month after month. The sole exception was the month of April and October in which the numbers exceeded Rs 1 trillion.
The collections stood at Rs 1.03 trillion in April, Rs 940.16 billion in May, Rs 956.10 billion in June, Rs 964.83 billion in July, Rs 939.60 billion in August, Rs 944.42 crorebillion in September and Rs 1 trillion in October.
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