GST COLLECTION – NET COLLECTION DESERVE PUBLICATION/ REPORTING INSTEAD OF GROSS COLLECTION – there may be huge liability of ITC for various reasons.

[DEVKUMAR KOTHARI]

Press Reports:

We find data on websites of concerned ministries and in   press reports about improving GST collection in news reports and on portals of  Press Information Bureau and GST department and various newspapers.

It is observed that what is being informed is amount of Gross collection ignoring liability towards Input Tax Credit (ITC) accumulated during reporting period and up to date accumulated liability for ITC.

ITC will periodically and on some specula occasions  will result into GST collection as and when ITC is availed or refund is allowed against excessive ITC in due course of decision making and / or judicial pronouncements.

From some of latest reports (summary/ highlights)

Ministry of Finance Posted On: 01 APR 2024 3:41PM by PIB Delhi

Second highest monthly Gross GST Revenue collection in March at ₹1.78 lakh crore; Records 11.5% y-o-y growth (18.4% on net basis)

Posted on 1^st February 2024:

AVERAGE MONTHLY GROSS GST COLLECTION DOUBLES TO ₹1.66 LAKH CRORE

Yearly gross revenue ₹20.18 lakh crore; 11.7% growth (13.4% on net basis)

Posted On: 31 JAN 2024 7:21PM by PIB Delhi :

₹1,72,129 crore gross GST revenue collected during January 2024; records 10.4% Year-on-Year growth

At ₹1,72,129 crore, GST collections are 2nd highest ever; crosses ₹1.70 lakh crore mark for the third time in FY 2023-24

With overall collection reaching ₹16.69 lakh crore, GST collections register 11.6% Y-o-Y growth in 10-month period .

From above illustrative reports and other reports in news , news papers , websites and magazines it is noticed that every time growth is shown based on gross collection. There is no information about accumulated ITC liability of governments.

Email correspondence:

To know about net collections and ITC liability the author sent the following email ( relevant portion):

from:	DEV KUMAR KOTHARI
to:	helpdesk@gst.gov.in, cbicmitra.helpdesk@icegate.gov.in, appointment.fm@gov.in,
date:	14 Mar 2024, 13:36
subject:	GST COLLECTION AND ITC LIABILITY ACCUMUATED
mailed-by:	gmail.com

Sirs,

Kindly inform me of the amount of GST collection and accumulated ITC on all India basis and state wise. 

You may also provide me with a link for the same, if it is available on any website.

I find information about GST gross collection only , this is misleading because ITC adjustable/ refundable is also important to know net GST collection and future liability by way of ITC allowable to GST registered dealers.

I hope for a quick  reply.

Reply:

In response to the above email author received a reply. In the reply answer was not proper and to the point. The reply stated about ITC, its claims and excess ITC circumstances relevant rules, forms etc.  The only portion of reply  relevant to the email sent by author reads as follows by way of a note:

Note – there is no link to check the GST collection or ITC accumulated refund on all over India for more clarification kindly visit at concern jurisdiction.

Therefore we find no proper and relevant information on the issue of net GST collection and ITC liability accumulated.

There can be huge accumulated ITC liability of Governments:

Huge ITC accumulation under different circumstances is likely due to

 Introverted rates,

Exports and deemed exports on which GST paid on inputs / ITC may be refundable.

Huge Capital expenditure on which huge GST is paid for which ITC is eligible.

Stocks/ inventory increases resulting into accumulation of more ITC than GST payable on sales.

Seasonal industries like sugar, some  food processing,  in which massive input expenditure are spent in short period of 3-4 months production period  and credit for ITC is availed over a long period during which sales takes place.

Large capital projects taking long period over which ITC is accumulated and ITC is claimed when production starts and pickup.

Therefore, publication of liability of governments for ITC accumulated is very important. Otherwise, governments might be boasting wrong growth amounts and rates.

Credit should also be given to business:

Tax collection whether be direct or indirect is dependent on efforts and honesty of businesses. Taking credit by tax departments and concerned ministries is okay but there should also be appreciation of people who are producing goods and services and people who are spending and making it possible for the governments to collect taxes. However,  unfortunately, it appears  that except honorable Prime Minister Shri Narendra Modi, all other ministers presents data and information in a manner highlighting as if by efforts of their team, tax collections are improving. This is not popper, proper and adequate credit should be given to real contributors to the economy.

Learned readers are requested to share their information on the subject matter  of articles.