GST receipts reached a monthly high of Rs.1.41 lakh crore in April 2021, indicating that the economy improved before the COVID pandemic erupted.
According to the official press release by the Ministry of Finance, GST collections received in April for transactions from the previous month are 14% higher than the Rs.1.24 lakh crore collected in March 2021.
On Saturday, the finance ministry announced that GST collections in April remained above Rs.1 lakh crore for the seventh month in a row. CGST is worth Rs.27,837 crore, SGST is worth Rs.35,621, IGST is worth Rs 68,481 crore (including Rs.29,599 crores earned on imports of goods), and Cess is worth Rs.9,445 crore (including Rs.981 crores collected on import of goods).
A statement released by the Ministry quotes that despite the second wave of the COVID-19 pandemic affecting sections of the region, Indian businesses have demonstrated remarkable resilience by complying with return filing requirements and paying their GST dues on time during the month.
GST sales have not only consistently surpassed Rs.1 lakh crore in the last seven months, but they have also been steadily increasing. There are also vital signs of a long-term economic recovery during this period. Closer tracking of false billing and deep data analytics based on data from various sources, including GST, income tax, and customs IT systems, and efficient tax administration have also been implemented.
GST sales have not only consistently surpassed Rs 1 lakh crore in the last seven months, but they have also been steadily increasing. There are also vital signs of a long-term economic recovery during this period. Closer tracking of false billing and deep data analytics based on data from various sources, including GST, income tax, and customs IT systems, and efficient tax administration have also been implemented for revenue augmentation. Most importantly, March 2021 marked the end of the financial year. Hence, closing books of accounts could have also contributed to the increased revenue collection in April 2021.
While these measures may be fruitful for boosting the revenue in the coming months under normal economic conditions, the second wave of the COVID pandemic is likely to pull down the numbers. With some parts of the country under lockdown due to a spike in COVID cases, collections may drop in the coming months.
For any clarifications/feedback on the topic, please contact the writer at annapoorna.m@cleartax.in
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.
