Maintaining the momentum the Union Territory witnessed in tax collection over the last two financial years, the overall Goods and Services Tax collection in the first four months of 2023 saw a 13% increase when compared to the same period in the previous fiscal.
The overall GST revenue generation (including both Central and State taxpayers) from April to July stood at ₹844.03 crore when compared to ₹744. 96 crore for the same period the previous financial year.
Data available with the GST office revealed that the total GST collection during 2022-23 was ₹2,370 crore, which was about ₹550 crore more when compared to 2021-22. The overall collection during 2021-22 was ₹1,818 crore. While the taxpayers to the central kitty contributed ₹601. 16 crore, the State’s share was ₹1,216. 84 crore.
Commissioner, GST and Central Excise, Puducherry, N. Padmasri, told The Hindu that GST collections from the centrally administered taxpayers had shown a 11% growth in 2021-22 and 27% during 2022-23.
“If we take the overall GST revenue from both the Centre and the U.T., it is seen that after the 2015-16 base year collection of ₹1,096 crore from the taxes subsumed in GST, the highest collection before the COVID-19 pandemic was in 2018-19, at ₹1,924 crore. Last financial year, the total collection was ₹2,370 crore (which is a 23% rise when compared to 2018-19), with ₹767 crore from central taxpayers and ₹1,603 crore from State taxpayers,” she said.
The major GST contributors, she said, were suppliers of electronic hardware, electrical goods, fast-moving consumer goods, software services, automobile parts, iron and steel sectors, packaging, chemicals, soap liquids and bulk drugs. The contribution of tourism-related services (hotels, restaurants, take-aways, exhibitions, rent a cab, e.t.c.) to the GST kitty was about 12%, she said.
Data showed that out of the approximately 26,500 registered GST taxpayers, more than 95% fall in the MSME bracket after the categorisation adopted in 2020 (with units having an annual turnover of up to ₹100 crore falling under the medium category).
Ms. Padmasri said the growth rate in GST revenue from the MSMEs was higher than that of the top 100 taxpayers of the U.T.
“Most of the new taxpayers getting registered with both Centre and the U.T. are also in this category. Recognising the significance of the MSME segment and also taking forward the prioritisation of the sector by the Union government, we have been holding regular meetings with representatives of small and medium enterprises. We have been closely monitoring the filing of returns/tax payments by selectively scrutinising the returns and through frequent inspections,” she said.
During a recent drive against fake entities, a few non-existent businesses were identified and their registration had been cancelled. Union Finance Minister Nirmala Sitharaman, during her recent visit to Puducherry, was briefed about the growth in GST collection and efforts being made for compliance management.
The U.T. is among the regions selected for the launch of the invoice incentive scheme on September 1. The scheme is to motivate customers to ask for a bill that could serve as an entry ticket for a surprise prize, she said.