Feb GST collection surges 8% in state
Ahmedabad: Increased inflationary pressure, improved
industrial production, revival in demand and in turn
consumption kept tax collection buoyant in February.
According to the data by Union ministry of finance, the
goods and services tax (GST) collection in Gujarat stood
at Rs 8,873 crore in February 2022, up 8% year-on-year
against Rs 8,221 crore in the corresponding month last
Industry players and tax
professionals attribute the spike in tax collection to
inflation and cost pressures in addition to streamlining
of business procurement cycles.
“The demand has improved
to an extent and the positive sentiment remains in the
domestic market especially after the receding of the
Omicron wave. As a result, the consumer confidence was
good, which drove consumption due to which tax
collection went up,” said PathikPatwari, senior
vice-president, Gujarat Chamber of Commerce and Industry
Meanwhile, raw material
prices even though higher, remained stable, which kept
industrial production too afloat, according to industry
players. “Since raw material costs have remained on the
higher side overall, inflationary pressures will keep
the tax collection high,” Patwari further added.
Industry players also said
that besides raw materials, prices of finished goods
including textiles, apparel, cement, steel, gold, silver
jewellery and even edible oils have also increased.
According to data by state commercial tax department,
total collection of state goods and services tax (SGST),
stood at Rs 3,007.46 crore with an IGST settlement of Rs
1,179.74 crore, amounting to a total of Rs 4,187.20
crore in February as compared to Rs 4,365.79 crore in
Net VAT collection in Gujarat stood at Rs 2,592.28 crore
in February as compared to Rs 2,622.4 crore in January.
Source::: THE TIMES OF INDIA,