February 1, 2021 12:34:13 am
Goods and Services Tax (GST) collections in January (for sales in December) rose 8.1 per cent to Rs 1,19,847 crore, the highest level since the July 2017 rollout of the indirect tax regime. Pickup in economic activity along with compliance measures and action against tax evaders by use of data analytics along with the recently introduced technological systems of e-invoicing contributed to the surge in GST revenues.
The Finance Ministry said that the record GST mop-up points to economic recovery and action against tax evasion. “GST revenues above Rs 1 lakh crore for the stretch of last four months and a steep increasing trend over this period are clear indicators of rapid economic recovery post pandemic. 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 last few months,” it said.
GST intelligence and CGST authorities are undertaking action against tax evaders, with more than 2,700 cases booked against around 8,500 fake GSTIN entities as of now. Authorities have recovered over Rs 858 crore through such actions. However, there is no breakup of the GST revenues collected through filing of returns and through recovery drives by the authorities.
Revenue Department sources said that with complete data sharing among GST, Customs and income tax, and use of data analytics, GST intelligence authorities have been able to identify evaders who use various means including fake bills and bills through layers of intermediaries.
GST collections, which are an indicator of economic activity, had plummeted to a record low of Rs 32,172 crore in April, following the nationwide lockdown in the wake of Covid-19.
Out of Rs 1,19,847 crore GST revenues in January, Central GST (CGST) is Rs 21,923 crore, State GST (SGST) is Rs 29,014 crore, Integrated GST (IGST) is Rs 60,288 crore (including Rs 27,424 crore collected on import of goods) and cess is Rs 8,622 crore (including Rs 883 crore collected on import of goods), the statement said. A total of 90 lakh GSTR-3B returns were filed for the month of December up to January 31, as against 87 lakh in the previous month.
The government settled Rs 24,531 crore to CGST and Rs 19,371 crore to SGST from IGST as regular settlement. After this, the total revenue earned by the Centre is Rs 46,454 crore as CGST and by states is Rs 48,385 crore as SGST, the Ministry said.
In January, revenues from import of goods were 16 per cent higher and revenues from domestic transactions (including import of services) were 6 per cent higher than the same period last year, the Ministry added.
Deloitte India senior director M S Mani said, “The surge in GST collections observed during the past four months is expected to be sustained in the coming months of the current fiscal with more service sector activities like aviation, hospitality, entertainment etc opening up across states since January.”
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