Gross GST income collected February 2021 is Rs 1,13,143 crore
GST collections crossed the Rs 1 lakh crore-mark for the fifth month in a row in February, rising 7 per cent yearly to over Rs 1.13 lakh crore, indicating financial restoration, the finance ministry stated on Monday. Items and Providers Tax (GST) collections had risen for 2 straight months to the touch report Rs 1,19,875 crore in January and Rs 1.15 lakh crore in December. The gross GST income collected February 2021 is Rs 1,13,143 crore, of which Central GST is Rs 21,092 crore, State GST is Rs 27,273 crore, Built-in GST is Rs 55,253 crore (together with Rs 24,382 crore collected on import of products) and Cess is Rs 9,525 crore (together with Rs 660 crore collected on import of products). GST income in February final yr was Rs 1.05 lakh crore.
“In keeping with the pattern of restoration within the GST revenues over previous 5 months, the revenues for the month of February 2021 are 7 per cent increased than the GST revenues in the identical month final yr. “Throughout the month, revenues from import of products had been 15 per cent increased and the revenues from the home transaction (together with import of companies) are 5 per cent increased than the revenues from these sources throughout the identical month final yr,” the ministry stated in a press release.
GST revenues surpassed Rs 1 lakh crore-mark fifth time in a row and crossed Rs 1.1 lakh crore for the third consecutive month post-pandemic. This can be a clear indication of the financial restoration and the impression of assorted measures taken by tax administration to enhance compliance, the ministry stated.
GST collections, which instantly replicate the state of financial exercise, had plummeted to a report low of Rs 32,172 crore in April 2020, after the federal government imposed a nationwide lockdown to curb the unfold of coronavirus. In the meantime, the finance ministry has launched Rs 1.04 lakh crore GST compensation to states since October to fulfill the shortfall in income.
The lockdown, categorised by a number of companies as one of many strictest on the planet, pummelled the financial system as demand dried up and non-essential companies had been shuttered. Within the April-June quarter, the financial system contracted by the steepest ever 24.4 per cent, and seven.3 per cent within the September quarter. Nevertheless, in October-December it got here again in constructive territory with 0.4 per cent progress. As restrictions had been regularly lifted, many elements of the financial system had been in a position to spring again into motion, though output stays effectively beneath the pre-pandemic ranges.
Icra Principal Economist Aditi Nayar stated whereas the expansion of GST collections eased mildly in February 2021, it remained wholesome, consistent with the consolidation within the momentum of financial exercise noticed throughout a wide range of lead indicators. Subsequently, a beneficial base impact is prone to outcome within the CGST collections increasing by 18-23 per cent in March 2021.
Deloitte India Senior Director M S Mani stated, “Along with the stabilisation of financial actions, the persevering with pattern of excessive GST collections for the previous few months can also be on account of the info analytics strategy adopted by the authorities, which has led to important detection of evasion and incorrect ITC availment. With the gradual opening up of the companies sectors, financial exercise is anticipated to choose up, resulting in improved collections within the subsequent month as effectively”.
Shardul Amarchand Mangaldas & Co Companion Rajat Bose stated the varied measures taken by the federal government to make sure compliance additionally appears to be paying off. “Hopefully, the worst is over and this could positively carry a cheer to the federal government which desperately wants the fiscal sources to implement its coverage commitments.”
PwC India Companion & Chief, Oblique Tax, Pratik Jain stated: “It’s anticipated that the pattern of accelerating GST assortment would proceed as we strategy the monetary year-end and audits change into extra rigorous. This could give much-needed confidence to the federal government to contemplate charge rationalisation”.
