Despite the disruption caused by the COVID-19-induced lockdown during the first half of FY 2020-21, the government managed to raise a total gross GST revenue of Rs.10.12 lakh crore from April 2020 to February 2021, compared to Rs.12.22 lakh crore in FY 2019-20.
The monthly GST collections for March 2021 stood at Rs.1.24 lakh crore, the highest since the inception of GST, stated the PIB press release by the Ministry of Finance dated 1st April 2021.
GST collections have been increasing since September 2020, owing to the economic recovery and unlock process. Since October 2020, monthly GST revenue figures have remained above Rs.1 lakh crore. The monthly GST revenue surpassed Rs.1 lakh crore for the fifth time in a row in February 2021.
The GST revenues for February 2021 were 7% higher than the same month in the previous financial year. In February 2020, the GST collection totalled to Rs.1.05 lakh crore. The Central GST, State GST, Consolidated GST, and Cess are included in this gross GST income.
The central government has only received 47% of the revised full-year GST collection goal of Rs.6.90 lakh crore. The annual GST figures in the Budget document only include the Centre’s share and the Integrated GST portion. According to projections, the Central GST (Rs 5.80 lakh crore) will account for 84% of total GST revenue. In comparison, the GST reimbursement cess will account for 16% (i.e. Rs 1.10 lakh crore).
According to the Union Budget 2021, the government has reduced its projections for the current fiscal year by 25% to Rs 5.15 lakh crore from Rs.6.91 lakh crore. The critical component of GST collections in Budget 2021, the Central GST (CGST), has been reduced to Rs.4.31 lakh crore from an earlier estimate of Rs.5.8 lakh crore.
This fiscal year’s CGST collection has reached Rs.1.71 lakh crore, compared to a revised estimate of Rs.4.31 lakh crore. In this financial year, the gross GST cess has been Rs.0.72 crore, compared to Rs.0.84 crore in revised estimates.
The government has set Rs.6.3 lakh crore as the budget for the next financial year 2021-22, i.e. 22.3% or Rs.1.14 lakh crore higher than the revised estimate for the financial year 2020-21. Closer tracking of fake-billing, deep data mining using data from various sources like GST, income tax, customs IT systems, and successful tax administration have all led to the steady rise in tax revenue over the last few months.
The government expects the figure to increase in the coming months by expanding the e-invoicing system and the plugging of gaps in the GST and the IT return filing.
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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.