The Finance Ministry released Goods and Service Tax (GST) collection data for August 2021 on 1st September 2021. The GST collections made during August 2021 stood at Rs.1.12 lakh crore.
The GST collections include CGST of Rs.20,522 crore, SGST of Rs.26,605 crore, IGST of Rs.56,247 crore and Cess of Rs.8,646 crore. The IGST amount includes Rs.26,884 crore collected on import of goods, and the Cess includes Rs.646 crore collected on import of goods.
As a regular settlement from IGST, the Finance Ministry has settled Rs.23,043 crore to CGST and Rs.19,139 crore to SGST. In addition to this, the Centre has settled Rs.24,000 crore as IGST ad-hoc settlement in the ratio of 50:50 between Centre and states/Union Territories (UTs).
After regular and ad-hoc settlements, the total revenue of the Centre and the States in August 2021 is Rs.55,565 crore for CGST and Rs.57,744 crore for the SGST. The ministry stated that during August 2021, the revenues from the domestic transactions (including import of services) were 27% higher than the revenues from these sources during August 2020.
There is a slight dip in August 2021 compared to July 2021 collections of Rs.1.16 lakh crore. However, the GST collections crossed Rs.1 lakh core mark consecutively for the second month. These steady GST collections indicate that economic recovery post the second wave of the COVID-19 is well underway.
The GST collections were consistently crossing the Rs.1 lakh crore mark from October 2020 to May 2021. However, it slipped to Rs 92,849 crore in June 2021 due to the economic disruption caused by the second wave of COVID-19. However, now most key manufacturing states have shown an increase of 25% to 35% in collections compared to August 2020.
The impact of easing COVID restrictions can be seen in GST collections for July and August 2021. The steady collection of GST revenues indicates that the Indian economy is recovering at a fast pace. The GST collections align with the Gross Domestic Product (GDP) and V-shaped economic recovery, announced by the Finance Ministry.
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DVSR Anjaneyulu known as AJ, is a Chartered Accountant by profession. Loves to listening to music & spending time with family and friends.