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July GST collection: Numbers look reasonable but devil lies in details, say experts

India's maiden GST collections hit Rs 92,283 crore in July, surpassing the target, Finance Minister Arun Jaitley said today, adding that the tax collection number would "somewhat increase" with more compliances.

So far, 72.33 lakh taxpayers have migrated to the new system. Of these 58.53 lakh have completed all the formalities, said FM.

To discuss the implications of this above number, CNBC-TV18 spoke to Dinesh Kanabar, Dhruva Advisors and A Prasanna of I-Sec PD.

Both the experts see this as a reasonably good number but said it would be difficult to draw conclusions from it because it is only the first month and the input tax credit is also not fully working. Therefore, no firm conclusions can be drawn.

According to Prasanna, the house was working with an monthly average number of Rs 1,00,000 crore. If one were to look at the distribution, it looks like states are doing better than the Centre, there is shortfall of revenues as far as Centre is concerned, he added.

Prassana is also of the view that the Centre might miss the fiscal deficit target this year and expect it to be at 3.5 percent of GDP.

Talking about compliance issue, Kanabar said it was extremely difficult to log on to the site and load the details. So, the compliance going forward could be different than seen in the month of July.

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