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The government expects average monthly GST collections to touch about Rs 1.85trillion in the next fiscal, up from about Rs 1.66 trillion this year, Revenue Secretary Sanjay Malhotra said on Friday.
In a post-Budget interview with PTI, Malhotra also said the incorporation date for startups to avail of tax benefits for three years out of 10 have been extended by a year till March 31, 2025.
He also said the customs duty cut in mobile spare parts and components to 10 per cent is intended to simplify tax structure, reduce classification disputes and should further spur investment in mobile manufacturing.
Finance Minister Nirmala Sitharaman in her 2024-25 interim Budget speech had said the GST taxpayer base as well as monthly revenues have doubled since its launch. The monthly Goods and Services Tax (GST) collection has crossed Rs 1.70 trillion in three months this fiscal, taking the average monthly mop-up to Rs 1.67 trillion in current fiscal.
“GST collections are expected to grow about 11 per cent in 2024-25. If the monthly collection is Rs 1.67 trillion this fiscal, a growth of 11 per cent would be Rs 1.80-1.85 trillion monthly collections. This should be the new normal for GST collection in the next fiscal,” Malhotra said.
In the next fiscal, the Budget has estimated GST collections at Rs 10.68 trillion, a 11.6 per cent growth over Rs 9.57 trillion mop-up in 2023-24.
With regard to duty cut on imports of mobile spare parts notified on January 30, Malhotra said the revenue implication will be about Rs 500 crore.
“The duty cut simplifies the taxation structure and classification dispute because some of the mobile parts were at 15 per cent, some at 10 per cent, so there were some overlap. So, to avoid disputes, we have reduced tax rates to 10 per cent.
“Manufacturing of mobile is doing very well in India and this will hopefully further spur investment in the mobile manufacturing sector in the country,” Malhotra said.
The government estimates to collect Rs 2.31 trillion in customs duty in the next fiscal, higher than Rs 2.19 trillion this fiscal.
About revenue implications, he said customs revenue is a small part of gross total revenue.
“Neither is customs duty a primary source of revenue nor the primary purpose of customs is to gather revenue. So, the revenue implication is minuscule, less than Rs 500 crore,” Malhotra added.
First Published: Feb 02 2024 | 2:45 PM IST
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