GST collection crosses Rs 1 lakh crore for second consecutive month in August
Indicating a pick-up in economic activity, GST collections topped Rs 1 lakh crore for the second consecutive month in August and stood at Rs 1.12 lakh crore. Tax collection in August on goods sold and services rendered was 30 per cent higher than Rs 86,449 crore collected in August 2020, and 14 per cent higher than Rs 98,202 crore collected in August 2019.
Sequentially, however, August 2021 collections declined by 3.76 per cent as compared to July 2021 collections of Rs 1.16 lakh crore.
“Gross GST revenue for the month of August 2021 is Rs 1,12,020 crore, of which Central GST is Rs 20,522 crore, State GST is Rs 26,605 crore, Integrated GST is Rs 56,247 crore (including Rs 26,884 crore collected on import of goods) and cess. 8,646 crore (including Rs 646 crore collected on import of goods),” the Finance Ministry said in a statement.
During August this year, revenue from domestic transactions (including import of services) was 27 per cent higher than revenue from these sources during the same month last year.
GST collections, after posting above Rs 1 lakh crore for nine consecutive months, fell below Rs 1 lakh crore in June 2021, when the blip occurred due to the second wave of COVID-19.
“With the easing of Covid restrictions, the GST collection for July and August 2021 has again crossed Rs 1 lakh crore, which clearly indicates that the economy is recovering at a fast pace.
Along with economic growth, anti-theft activities, especially action against fake billers, are also contributing to the increase in GST collections. Strong GST revenue is likely to continue in the coming months as well,” the Finance Ministry said.
However, ICRA Chief Economist Aditi Nair cautioned on the gradual decline in collections and moderation in the August construction PMI. The PMI index stood at 52.3 per cent in August, up from 55.3 per cent in July.
“The gradual decline in GST collections, lower-than-expected core sector growth, and moderation in the August manufacturing PMI suggest that there is a need to exercise some caution regarding the strength of the ongoing recovery in the current quarter.
“We expect GDP growth in the current (September) quarter to be in the range of 7.8-8.8 per cent, with absolute levels of GDP continuing to hold pre-pandemic levels as the services sector catches up with the rest of the economy. fights for. ,” Nair said.
India’s economy grew by a record 20.1 per cent in the April-June quarter, helped by a weak base from last year and a sharp rebound in manufacturing and services sectors.
Singhania GST Consultancy & Co Partner Aditya Singhania said that the collection during August 2021, mainly relates to the supplies made in July 2021, and it maintains revenue stability as compared to the July 2021 collection, which clearly indicates That the economy is thriving. with a constant speed.
“With new milestones, India extends waiver scheme for getting people vaccinated, easing of COVID restrictions, waiver of late fees due to non-filing of GSTR 3B from July, 2017 to April, 2021, with September being the last month. With the coming due dates for filing annual return/self-attested reconciliation statement for FY 2020-21, to rectify errors/omissions for the financial year 2020-21, gradual spurt in e-waybill generation , etc. We may see an uptick in revenue from GST in the coming months,” he said.
In the current fiscal, GST collections touched a record high of Rs 1.41 lakh crore in April but declined to over Rs 1.02 lakh crore in May after the outbreak of the second wave. In June, collections slipped below the psychological level of Rs 1 trillion to Rs 92,849 crore, followed by a sharp rebound to Re 1 in July.
16 lakh crore. It was Rs 1.12 lakh crore in August.
EY Tax Partner Abhishek Jain said the collection is for supplies made in the month of July, when lockdown restrictions were eased in most parts of the country. “With increasing vaccination rates and accelerating commercial supply, the momentum is expected to continue in the coming months,” Jain said.
Shardul Amarchand Mangaldas & Co Partner Rajat Bose said that it is heartening to see that manufacturing states like Maharashtra, Karnataka and Tamil Nadu have shown more than 30 per cent growth in GST collection as compared to last year, which is a sure-fire economic recovery. signs of.
MS Mani, Senior Director, Deloitte India, said, “Most of the major manufacturing states have shown a 25-35 per cent growth in collections as compared to the same period last year, indicating that the economic recovery may accelerate in the current year.
Read more: GST collections over Rs 1.12 lakh crore in August: Finance Ministry
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