April 2, 2021 5:38:56 am
GST collections in March (for sales in February) touched a record high of over Rs 1.23 lakh crore, a 27 per cent growth over the year-ago period, the Finance Ministry said on Thursday, reflecting a pickup in the economy along with increased measures to ensure compliance and restrictions on input tax credit.
“GST revenues crossed above Rs 1 lakh crore-mark at a stretch for the last six months and a steep increasing trend over this period are clear indicators of rapid economic recovery post pandemic,” the ministry said.
Closer monitoring against fake-billing, deep data analytics using data from multiple sources including GST, income tax and Customs IT systems and effective tax administration have also contributed to the steady increase in tax revenue over the last few months, it added.
Steady collections point to recovery after Covid woes
The gross GST revenue collected in the month of March 2021 stood at Rs 1,23,902 crore, of which central GST is Rs 22,973 crore, state GST is Rs 29,329 crore, integrated GST is Rs 62,842 crore (including Rs 31,097 crore collected on import of goods) and cess is Rs 8,757 crore (including Rs 935 crore collected on import of goods).
“GST revenues during March 2021 are the highest since the introduction of GST. In line with the trend of recovery in the GST revenues over the past five months, the revenues for the month of March 2021 are 27 per cent higher than the GST revenues in the same month last year,” the Finance Ministry statement added.
Goods and services tax (GST) revenues contracted by 41 per cent and 8 per cent in first and second quarters, respectively, and then grew at 8 per cent and 14 per cent in the third and fourth quarters of fiscal 2020-21.
Abhishek Jain, tax partner, EY, said, “The all-time high record GST collections of Rs 1.23 lakh crore and it being 27 per cent higher than last year is a significant uptick. It clearly shows a sustained economic recovery and also is a result of GST audit closures and the government tightening compliance and anti-evasion measures.”
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