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Festive season likely to drive GST collections past Rs 1 trillion in Nov

The collections during November and December 2018 would reflect the sales and purchases made during the months of October and November 2018

Press Trust of India  |  New Delhi 

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The expects the collections to cross Rs 1 trillion in November and December on account of demand and the anti-evasion measures initiated by the revenue department.

The (GST) revenue rose to Rs 944.42 billion in September and officials feel it could surpass the landmark 1 trillion on increased demand during festival season.

"With the current trend for mop-up, it is expected that the monthly collections could again touch Rs 1 trillion around November and December," an said.

The collections during November and December 2018 would reflect the sales and purchases made during the months of October and November 2018.

According to the official, people usually hold back their purchases till Ganesh Chaturthi, which marks the onset of and fell in September this year. Besides, the revenue department's initiative to plug loopholes in the system to curb evasion too would help in raising revenue.

"The collection should cross Rs 1 trillion because of demand. This is the time when people make purchases and companies offer discounts and come up with promotional offers to boost sales. We expect increase in sales which in turn will result in higher revenues for the government," said Partner L

Partner said the duo of Indian festivities and wedding season would push the overall demand, temporarily lifting the for November and December.

"Controlling fiscal deficit with the help of an increase in revenue collection is economically more feasible option than restricting government spending, even if this increase by means of implementing stringent anti-evasion measure," Mohan said.

The official, however, has expressed the apprehension that revenues could witness a decline thereafter as sales and purchases usually taper off in the last quarter of fiscal.

The has targeted monthly 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 in which the numbers exceeded Rs 1 trillion.

The collections stood at Rs 940.16 billion in May, Rs 956.10 billion in June, Rs 964.83 billion in July, Rs 939.60 billion in August and Rs 944.42 billion in September.

First Published: Tue, October 02 2018. 17:45 IST
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