From Our Special Correspondent
NEW DELHI, Sep 7: The Meghalaya government clarified on Saturday that GST collections in the state have, in fact, increased, contrary to media reports that cited only one month’s tax collections.
“The overall GST collections of the state clearly show an increasing trend, with a growth rate of 16.66% during 2023-24,” a statement from the Finance department said.
GST collections have risen from Rs 1,118 crore in 2021-22 to Rs 1,723 crore now, according to a statement from the Joint Secretary, Finance Department of Meghalaya.
The recent reports on a dip in GST collections for the state are based only on April 2024 returns, which do not account for all settlements, the statement added.
The total GST receipts from April to August 2024 for Meghalaya stand at Rs 772 crore, compared to Rs 737 crore during the corresponding period of the previous year, reflecting a 5% increase in receipts.
The growth rates for other states in the Northeast are: Assam 7%, Arunachal Pradesh 8%, Manipur 11%, Mizoram 1%, Nagaland 0%, Sikkim -16%, and Tripura 11%. This makes it clear that Meghalaya is not at the lowest end of the spectrum in the region.
Regarding reports of large-scale purchasing outside the state, the government clarified that Meghalaya still receives its share of GST in cases of interstate buying and selling. GST comprises three components: SGST and CGST, which are levied on transactions within a state, and IGST, charged on interstate transactions.
If a seller in Assam bills a buyer in Meghalaya, IGST is levied on the sale, and the proceeds are shared equally between the Centre and the destination state, in this case, Meghalaya, the statement explained. The government is also conducting awareness campaigns, especially for small shopkeepers who procure goods from outside the state, to ensure that invoices are generated with Meghalaya addresses so that the GST accrues to the state. Intensive scrutiny of returns is being conducted to check for evasion, with 376 cases involving Rs 121 crore under scrutiny in the current financial year, it added.