Bengal's GST collection increases by 30% during April-July of FY23

Kolkata: The state government has witnessed an all-time increase of 30 per cent in its GST (Goods and Services Tax) collection in the first four months (April to July) in the ongoing fiscal in comparison to the corresponding period of 2021-22 fiscal.

According to sources in the state Finance department, the state's GST collection has been Rs 12,300 crore from April to July this year. In the 2021-22 financial year, the April to July collection was Rs 9,400 crore.

2021-22 fiscal had witnessed a spurt in GST collection of 23 per cent in comparison to the 2020-21 financial year.

A senior official of the state Finance department attributed the good GST collection to macro-economic policy which resulted in demand simulation and a host of measures towards 'Ease of Doing Business'.

Inspite of the good GST collection, the menace of fake invoices under GST has been a concern in Bengal as in all other states in the country.

"We are carrying out raids from time to time and cancellation of registration of bogus firms are being executed every month," a senior official of the Finance department said.

The number of registrations in the state is for nearly 7 lakh companies but 5,200 companies contribute to 88 per cent of GST collection.

The Directorate of Commercial Taxes, West Bengal had cancelled more than 14,000 in November and December last year in a special drive.

GST registration can be done from anywhere in the country. But it has been witnessed that a good amount of registrations are being done from remote areas of the state which is rather unusual. So often special drives are undertaken and concerned officials travel physically to such places from where such suspicious registrations are being made and accordingly registrations of bogus companies are cancelled.

As per Section 132 of CGST Act 2017, issuance of an invoice without the supply of goods or services and wrongful availing or utilisation of Input Tax Credit is a cognizable and non-bailable offence.

Such fraudulent activities of issuing invoices without the supply of goods or services not only defraud banks but also adversely affects revenue collection. The unearthing of such activities assumes significance as it impacts not only the concerned state's Tax collection but other states too, considering the fact that GST registration can be done from anywhere in the country.