Telangana tops in GST returns, growth rate declines from 15.5 to 13%

By Newsmeter Network  Published on  28 Feb 2020 3:45 AM GMT
Telangana tops in GST returns, growth rate declines from 15.5 to 13%

Hyderabad: While the country has witnessed a decrease in GST collection, Telangana has recorded an increase in goods and service tax returns (GST). However, the state's growth rate has declined when compared to the previous year.

In the southern region, Telangana has turned out to be a crucial state in terms of GST returns. In the 2019-20 Budget, a total of Rs. 47,000 crores were expected to come through commercial tax and GST but there are chances of exceeding these estimates. Already Rs. 40,268 crores have been collected, which is 86 per cent of the total target. For 2018-2019, the returns were Rs. 44,379 crore and the growth rate was 15.37 per cent. Amidst adverse conditions, the state government's programmes have given good results. As this financial year ends, officials expect total returns of Rs. 48-50,000 crores.

In the next 36 days, a total of Rs. 8,000-10,000 crores are expected to be collected in the form of debts through continuous surveillance programmes. Besides, a few departments are working continuously to ensure taxes are paid. In each division, two wards are working in two shifts, while 30 departments have been arranged to check vehicles that come to Telangana from other states. A large number of vehicles are being caught that have not cleared the GST bills but are transporting goods. Taxes of Rs. 27 crores was collected by seizing vehicles. As of 23 February, state GST, integrated GST, and VAT collected for alcohol and petrol amounted to Rs. 40,628 crores, which include Rs. 20,618 crore by VAT from GST, Rs. 7,720 crore on the VAT by selling petrol and diesel, and Rs. 7,980 crore on the VAT collected by selling alcohol.

In the last financial year, a total of Rs. 45,000 crore came through GST and VAT with which Telangana achieved a growth rate of 15.5 per cent. The growth rate has decreased to 13 per cent this year. Before the elections, the Central government reduced the GST rates on many services and due to the economic downturn, the sales dropped. The rains, too, affected the VAT rates on petrol as prices were reduced. These are some of the reasons for the drop in growth rate. However, this financial year, the GST and VAT returns have been increasing.

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