GST revenue target set at Rs12 trillion for FY19

New Delhi: The GST Council has set Rs12 trillion as the target for goods and services tax collections for the current financial year, buoyed by rising tax compliance in the first year of the new indirect tax regime.

The federal indirect tax body noted that the average monthly receipts in the last fiscal year, despite several disruptions, were Rs89,885 crore, marginally below the Rs91,000 crore target.

“GST receipts in FY18 have not been bad. The revised monthly revenue target for FY19 takes into account a 14% increase in states’ revenue growth estimate for compensation,” said a finance ministry official, requesting anonymity.

Policymakers’ confidence in generating higher revenue from GST stems from the anti-tax evasion measures being put in place and the ongoing economic recovery. The positive impact of the e-way bill, which tracks goods movement electronically and was implemented from 1 April, is expected to reflect by June or July, the official added.

Economic growth has also accelerated from 5.7% in the April-June period of FY18 to 6.5% in the second quarter and 7.2% in the third. Growth is projected at 6.6% in FY18, implying that growth in the final quarter will be 7%.