NEW DELHI: Three quarters of the 2022-23 financial year saw Delhi’s goods and services tax (GST) collection increase by 22 per cent in comparison to the last fiscal, officials in Delhi government’s finance department said on Tuesday.According to officials, the government collected Rs 41,351 crore from goods and services tax from April to December apart from nearly Rs 4,100 crore from value added tax. In 2021-22, the government’s collection from GST in the first three quarters was recorded at 33,691 crore.As per the data shared by the ministry of finance, in terms of revenue, the GST collection in the city was highest in April, followed by September and October.“If we look at the comparative numbers, our month-on-month collection grew more in May and June vis-à-vis 2021, as businesses were affected due to Covid-induced lockdown last year,” said a senior Delhi government official. “Our GST collection in the third quarter of 2022-23 was at par with the national growth,” the official added.Last two financial years – 2020-21 and 2021-22 – were affected by the pandemic, which resulted in lower collections from GST and VAT. With businesses opening up and normalcy returning in all sectors, the government’s revenue collection is also going up.“In fact, there was a negative growth in 2020-21 due to the lockdown but 2021-22 was still better. This financial year does not have any impact of Covid-19 and the economic activities have increased too,” said a Delhi government official.GST is Delhi government’s mainstay in tax revenue. The Delhi government has projected a total receipt of Rs 75,800 crore in the budget for 2022-23 of which the tax collection has been estimated at Rs 47,700 crore. While GST and VAT have been pegged at Rs 31,200 crore, excise duty, stamp and registration fee on sale of properties and road tax on motor vehicles are the other components.With average monthly collection now hovering around Rs 4,500 crore, officials said they are expecting an increase of 15-20 per cent in revenue collection than the estimated amount. “We will now run a mop-up exercise in the last quarter,” said an official.Officials said that the computation of GST revenue by the ministry of finance also includes the central GST component, which is not taken into account by states when they calculate their own collections. The states, however, also add the revenue collected through VAT, which is levied on sale of liquor and petroleum products, while making the calculations.
Source: https://timesofindia.indiatimes.com/city/delhi/delhi-sees-22-rise-in-its-gst-collection/articleshow/96720084.cms