At 13,400cr, Maharashtra tops in GST collections

Maharashtra has topped in GST collections, mopping up more than Rs13,400 crore in July — the first month after the new tax came into force. Figures released by government said the state collected Central GST (CGST) of Rs3,467 crore, with Rs4,809 crore coming to its kitty as State GST (SGST). The state has also collected cess of Rs846 crore, which will be used to plug the shortfall on account of shifting to the new taxation regime. The GST constitutes CGST and SGST, which are the centre and state's share respectively. Apart from this, there is IGST, which is the tax collected by a state in which good or services are supplied. For example, if Maharashtra supplies an item to Gujarat, the latter will gets its share in the form of Integrated Goods and Services Tax (IGST). In the first month of GST implementation, the government has collected Rs92,283 crore as overall GST. This includes all three types of levies. Maharashtra's share in IGST stands at Rs4,341 crore. IGST is shared between the centre and the states where goods or services have been supplied from Maharashtra. Even Maharashtra will get its share of IGST for imports from other states as well as overseas, which will be further added to the total collection of Rs13,400 crore. A high CGST shows that the state leads in manufacturing activity. CGST is taxed from the first point, which is the place of manufacture. The level of IGST indicates the volume of exports from Maharashtra to other states. In the pre-GST regime, this tax went to the state which was importing the goods or services. Karnataka stands second in terms of total GST collected at Rs6,904 crore. However, in terms of CGST, it is Tamil Nadu which immediately follows Maharashtra. Maharashtra also tops in GST returns filed, in absolute numbers. Out of 8.64 lakh assessees who were supposed to file returns, over 6 lakh have done so in Maharashtra. This comes to nearly 70% of the total assessees. Uttar Pradesh stands second in return filing at 4.16 lakh returns filed out of 5.67 lakh assessees. These are the first round of returns to be filed for the new tax applicable since July 1. Only basic information of the sales, purchase and the tax payable has to be submitted in the returns. The 70% returns filed is a good achievement considering the numbers so far in the state, say sources in the department. However, there are certain hiccups like recognition of digital signatures by the system. Private limited companies are supposed to submit a digital signature. There are some cases in which the digital signatures are not being accepted in the system. BC Bhartia, a chartered accountant, said with the last date now gone, the returns will have to be paid along with a penalty. The delay was mainly due to complexities of the taxation system. Considering this, government should do away with the penalty, he suggested.