December is the sixth consecutive month that revenue from goods sold and services rendered exceeded ₹1 lakh crore
Gross Goods and Services Tax (GST) collections hit a three-month low of ₹1,29,780 crore in December, 26% higher than the pre-pandemic level of December 2019 and 13% higher than the same month in 2020 .
Revenue from imports of goods in December was up 36% compared to 2020, while from domestic transactions, which also included imports of services, was up 5% compared to the same month last year.
The Finance Ministry highlighted that the GST collection in December, reflecting the transactions done in November, ‘despite a 17.5% reduction in the number of e-way bills in the month of November’ compared to October by Rs 1.30 lakh crore was close to.
In October, 7.4 crore e-way bills were generated, resulting in revenue of ₹1,31,526 crore in November. While e-way bills fell to ₹6.1 crore in November, revenue slipped by only 1.33% month-on-month in December, which the ministry said was ‘due to better tax compliance and better tax administration by both central and state tax authorities. ‘. , The November GST revenue was the second largest revenue since the introduction of this indirect tax regime in July 2017.
“The average monthly gross GST collection for the third quarter of the current year stands at ₹ 1.30 lakh crore as against the average monthly collection of ₹ 1.10 lakh crore and Rs 1.15 lakh crore in the first and second quarters respectively,” the ministry said. A statement, saying it expects the ‘positive trend’ to continue in the last quarter of 2021-22.
“With the economic recovery, anti-theft activities, especially action against fake billers, are contributing to the increase in GST. The improvement in revenue is also due to various rate rationalization measures taken by the council to fix the inverted fee structure,” explained the revenue department.
Deloitte India partner MS Mani said GST revenue was strong despite reduction in e-way bill generation, possibly due to “higher collections from the services sector as well as continued focus on implementation of technology-based anti-theft measures”.
While revenue from domestic transactions grew 5% year-on-year in December, there was significant variation in collections across states, with revenues down 4% in Tamil Nadu and 2% in Rajasthan, Gujarat and Andhra Pradesh. I.
West Bengal and Bihar both saw a 10% drop in revenue, while Uttar Pradesh registered a modest 2% increase. Maharashtra, on the other hand, registered 11% revenue growth, while Karnataka’s revenue grew by 12%.
ICRA Chief Economist Aditi Nair said revenue from domestic transactions registered a relatively low growth in December, perhaps due to the continued drag imposed by delayed recovery in contact-intensive services.
He added that the overall GST kitty for December can be attributed to both anti-theft activities as well as a sharp increase in revenue from imports.
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