The government released a press note on 1st March 2022 declaring the GST revenue collections for February 2022. It stands at Rs.1,33,026 crore as per the statement by the Finance Ministry. These collections happen to pertain to January 2022 collected in February 2022.
It is the fifth time that the monthly GST collections have crossed the Rs.1.3 lakh crore mark. The revenue collections for the month is higher by 17.6% compared to the GST revenue collections in February of last year. Further, it is higher by 26% when compared to the GST revenues collected in February 2020.
However, the February 2022 collections are lower than January 2022, which stood at Rs.1,40,986. The Finance Minister announced the previous month’s collections while presenting the Union Budget 2022-23. It is said that February 2022 saw a lower collection due to fewer calendar days.
The rising numbers come amidst several anti-evasion measures by the department and the GST Council. Further, a pickup in economic activity has also contributed to the increase. The Ministry also attributed the increase in the revenues to recovery seen in some critical sectors, including automobiles.
The statement highlights that the rise in growth during February 2022 must be viewed amidst the lifting of partial lockdowns, weekend and night curfews, and several curbs that were in place by many states due to the peak in the pandemic. Many tax experts feel that the revenue collections will surpass the targeted collections for the current fiscal year if they continue at this pace.
The breakup of the total GST collections is Rs.24,435 crore of CGST, Rs.30,779 crore, Rs.67471 crore and Rs.10,340 crore towards cess. The government has collected IGST of Rs.33,837 crore and cess of Rs.638 crore on importing goods. Despite extending the levy of GST compensation cess up to 2026, the state compensation is ending in July 2022.
Additionally, there is a divergence of 2-23% among states. Both Karnataka and Maharashtra have posted a 21% rise in the monthly collections Y-o-Y basis. At the same time, Tamil Nadu and Gujarat posted a decent Y-o-Y growth of 5% and 8%. The government has distributed Rs.26,347 crore towards CGST and Rs.21,909 crore towards SGST out of the IGST collections. The aggregate revenue of the central and the state governments in February 2022 after the regular settlement works out to Rs.50,782 crore of CGST and Rs.52,688 crore of SGST.
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Annapoorna, popularly known as Anna, is an aspiring Chartered Accountant with a flair for GST. She spends most of her day Singing hymns to the tune of jee-es-tee! Well, not most of her day, just now and then.