The state government earned Rs 30,321.67 crore in second quarter of the current financial year (2018-19) through goods and services tax (GST). However, the revenue is Rs 5,632.42 crore, or 15.66 per cent, less than compared to the first quarter.
The state government’s target of revenue collection from GST for the entire financial year is around Rs.1.51lakh crore.
The major reason behind the drop in GST collection is a slowdown in sectors such as aviation, real estate, banking and insurance, said a senior official from the state’s finance department.
However, compared to second quarter of the last financial year (2017-18), the state government earned Rs 1,810.98 crore more in GST.
In first quarter of the current financial year, the state government managed to earn Rs 35,954.13 crore which was 39 per cent more compared to the corresponding quarter of the last fiscal year.
The official, however, claimed that overall, the GST regime has been beneficial to the state with Maharashtra earning Rs 1.15 lakh crore in the financial year 2017-18 compared to Rs 90,525 crore which it collected VAT in the financial year 2016-17.
A senior official further said, “One of the major reasons behind higher revenues in the first quarter of the current financial year was that a lot of disputes between traders and the department were settled over tax assessment and the actual revenue was realised.”
He further said, “The increase in the number of registered dealers under GST to 14.55 lakh from 8.30 lakh under VAT was one of the reasons why revenue increased in the financial year 2017-18 compared to the previous year.’’
What made several traders quickly adopt GST was the realisation that if one buys goods and services from an unregistered dealer, then a registered dealer would have to pay the entire tax and they won’t get any credit for it.
This resulted in big traders, manufactures and service providers insisting that vendors register for GST, said an expert.