Analysis of GST Collections: FY 2022-23 Insights and Reforms

Introduction: The Lok Sabha Unstarred Question No. 91 delves into the intricacies of India’s Goods and Services Tax (GST) collections for the Financial Year 2022-23. The query, posed by Shri D.M. Kathir Anand, seeks insights into the claimed vs. actual figures and the status of pending GST claims from various companies.

Detailed Analysis:

1. Discrepancy in GST Collections: Shri D.M. Kathir Anand raises concerns about the apparent disparity between the Government’s claimed GST collections of Rs. Seventeen lakh and fifty thousand crore and the actual figures. The Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, denies this, providing detailed figures for FY 2020-21, 2021-22, and 2022-23.

2. GST Collection Trends: The data reveals a consistent growth trend in gross GST collections. The figures for FY 2022-23 stand at Rs. 18,07,680 crore, showing a 22% year-on-year growth. The monthly average collections for the same fiscal year indicate a robust performance.

3. Pending GST Claims: The question addresses the claim that over Ten Lakh Crore of GST claims from about 10 Lakh companies are pending for realization. The Minister refutes this, providing data that contradicts the assertion.

4. Government Reforms and Initiatives: Shri Pankaj Chaudhary highlights the government’s proactive measures to enhance GST compliance and increase collections. These include structural changes, tax compliance improvements, and the deployment of advanced technologies like artificial intelligence and machine-based analytics.

5. Reforms Introduced:

• Calibration of GST rates to correct inverted duty structure.
• Pruning of exemptions.
• Measures for improving tax compliance, such as e-way bill mandate, ITC matching, e-invoice mandate, and Aadhaar authentication for registration.
• Use of technology like artificial intelligence for enhanced tax administration.

6. Continuous Monitoring and Action: The Minister emphasizes that GST is paid on a self-assessment basis, and tax administrations at both Central and State levels continuously monitor and take action against cases of non-payment or short payment.

Conclusion: The Lok Sabha Unstarred Question No. 91 provides a comprehensive overview of India’s GST collections for the Financial Year 2022-23. Despite concerns raised about the claimed figures and pending GST claims, the detailed analysis and response from the Ministry of Finance shed light on the robust growth in collections and the government’s proactive steps to enhance compliance. The reforms introduced indicate a commitment to addressing challenges and ensuring the integrity of the GST system in India.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE

LOK SABHA UNSTARRED QUESTION NO. 91
TO BE ANSWERED ON MONDAY, THE 04th DECEMBER, 2023 /AGRAHAYANA 13, 1945
(Saka)

GST Collections for the Financial Year 2022-23

91. SHRI D.M. KATHIR ANAND:

Will the Minister of FINANCE be pleased to state:

(a) whether it is a fact, that though the Government’s claim of GST collections for the financial year 2022 touched Rs. Seventeen lakh and fifty thousand crore but the actual GST collection is much lower due to the various factors affecting the collection of GST;

(b) if so, the details thereof and the reasons therefor;

(c) whether it is true that since the inception of GST, more than Ten Lakh Crore of GST claims from about 10 Lakh companies were still pending for realization; and

(d) if so, the details thereof and the steps taken or proposed to be taken by the Government to claim the GST dues pending for realization as on 31 March 2023?

ANSWER

THE MINISTER OF STATE IN MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)

(a) to (d): No Sir. The details of gross Goods and Services Tax collection on supply of goods and services (Domestic + Imports) for the FY 2020-21, 2021-22 & 2022-23 are as under:

(Rs. In crore)

The monthly average gross GST collection for the FYs 2021-22 & 2022-23 have shown 30% and 22% year on year growth respectively.

GST is paid on self-assessment basis and tax administration at Central and State level is empowered to take action against cases where GST is not paid and short paid. Detection of such cases and recovery of taxes not paid or short paid is a continuous process.

The Government, on the recommendations of the GST Council, has been bringing several reforms in GST. These measures would improve the GST compliance and increase the GST collection. These inter-alia include: –

(i) Structural changes like calibration of GST rates for correcting inverted duty structure and pruning of exemptions;

(Ii) Measures for improving tax compliance such as mandating e-way bill, ITC matching, mandating e-invoice, deployment of artificial intelligence and machine-based analytics, Aadhaar authentication for registration, calibrated action on non-filers, stop filers, targeted assessment-based action on risky tax payer, integration of e-way bill with fast tag etc.

(iii) System based analytical tools and system generated red flag reports are being shared with Central as well as State Tax authorities to take action against tax evaders.

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