Economy

GST Collections Back on Track; Crosses Rs.1 Lakh Mark After 8 Months

The month of October 2020 recorded a whopping Rs.1,05,155 crore in Goods and Services Tax (GST) collections, as per the latest release by the Ministry of Finance. GST collections had taken a hit since March 2020 after the coronavirus outbreak in India. Collections had dipped as low as Rs.32,172 crore in April, and in fact, this is the first time in eight months that it has crossed the Rs.1 lakh crore mark.

Since the past three months, the rising trend in GST collections is a sign that the economy is getting back on track after the lockdown, where business activities had taken a massive hit. Surprisingly, the months of September and October 2020 have recorded collections even higher than the collections in the financial year 2019-20 for the same periods. Revenue from the import of goods was 9% higher and the revenue from domestic transactions, which includes the import of services, is 11% higher than during the same month of the previous year. This is positive news and shows that things are looking better from an economic perspective.

Also Read: GST Officials Detect Tax Evasion Worth Rs.9.7 Crore

Out of the Rs.1,05,155 crore collected in October, CGST collections have amounted to Rs.19,193 crore, SGST to Rs.25,411 crore and IGST to Rs.52,540 crore, out of which Rs.23,375 crore was collections from the import of goods. The balance figure consists of cess collections which stood at Rs.8,011 crore, which includes Rs.932 crore on the import of goods.

The release also stated that the government had settled an amount of Rs.25,091 crore to CGST and Rs.19,427 to SGST from the IGST collections, as a regular settlement. After this settlement, the total revenue earned by the central and state governments for the month of October 2020 stands at Rs.44,285 crore for CGST and Rs.44,839 crore for SGST. The total number of GSTR-3B returns for the month of October 2020 stands at 80 lakh as of 31st October 2020.

For any clarifications/feedback on the topic, please contact the writer at

athena.rebello@cleartax.in

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