Telangana sees 17% rise in GST collections

The state commercial tax department has posted an impressive 17.06 per cent increase in revenues for January, collecting Rs 3,908.15 crore against Rs 3,351.48 crore last year. Officials said regular and persistent persuasion of trailing divisions such as Hyderabad Rural and Saroornagar had led to better earnings. Warangal registered an impressive 45 per cent growth after officials identified defaulters and conducted a special drive to prod them to file returns. Divisions like Panjagutta and Secunderabad posted an unimpressive growth.

Traders, it was said, normally tend to file returns late with payment of interest, a practice that officials are trying to curb. Constant



persuasion also led to timely reversal of IGST by the businesses. The reversals grew by 26 per cent to `2,020.82 crore, up from `1,598.11 crore in January 2024. IGST is a destination tax that is collected in the state where the goods or service is consumed. 

In this process the origin state will lose tax revenue. When the goods move from one state to another, tax moves along with it. In the origin state the person importing will adjust the input tax credit of IGST against his local liability. This process of adjustment will enable centrally located GSTIN to transfer the amount to the state treasury by way of IGST settlement.