GST collections expected to improve, says SBI Ecowrap report
Recently, official data showed that net tax collections for Q1FY22 stood at Rs 5.58 lakh crore.
GST collections expected to improve in coming months, said an SBI EcoWrap report.
"The overall GST collections in Apr-Jul 2021 is around 66 per cent higher than Apr-Jul 2020. Under this, the SGST is around 67 per cent higher than the same period last year. This is despite the devastating second wave India witnessed.
See Zee Business Live TV Streaming Below:
"Hence, in the coming months GST collections are expected to improve and states would have additional resources at their disposal to meet their finances," it said.
Recently, official data showed that net tax collections for Q1FY22 stood at Rs 5.58 lakh crore.
The Q1 FY22 tax collections are 36 per cent of the budgeted tax collections.
"This figure used to be around 26-29 per cent in the previous years.
"Hence, the fiscal situation as of now looks promising even with the added expenditure that the Government has recently announced. It is only the disinvestment figures which could be undershot," the report said.
The Centre has budgeted Rs 6.66 lakh crore as the states' share in the tax collections.
"With improvement in the direct tax collections, it is expected that Centre will be able to provide this amount to the states, thereby helping them manage their finances better," the report said.
In the last fiscal, the Centre had budgeted Rs 7.84 lakh crore, while it could only provide Rs 5.5 lakh crore.
However, the report noted that the Centre, however, has to release Provisional GST compensation to states or UTs to the tune of Rs 81,179 crore for Apr'20-Mar'21 and Rs 55,345 crore for Apr-May'21.
"This is subsequent to deliberations in the 43rd GST Council meeting, where it was decided that the Centre is borrowing Rs 1.59 lakh crore from the market through special window in current FY and passing it on to the states or UTs as a back to back loan in appropriate tranches as was done in last year," it said.
As per this decision, the report, cited that Rs 75,000 crore has been released to states or UTs as on July 15, 2021.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
Power of Compounding: How many years it will take to reach Rs 2 crore corpus if your monthly SIP is Rs 3,000, Rs 4,000, or Rs 5,000
08:30 PM IST