OCTOBER GST COLLECTION SECOND HIGHEST EVER

OCTOBER GST COLLECTION SECOND HIGHEST EVER

For the month of October, gross Goods and Services Tax (GST) collection is reported to be crossing Rs 1.3 Lakh Crore. The GST revenue for October is the second-highest ever in history after the implementation in July 2017 for the first time. The collection is second only to the revenues in April 2021. It is 24% higher than the revenues collected in October last year and 36% higher than October, 201. Counting this month, the GST collection crossed the RS 1 Lakh Crore for the four months consecutively. The GST revenues for the month of September stood at Rs 1.17 Lakh crore.

According to the statements from Finance Ministry, this can be seen as a hint of trends in economic recovery and an increase in e-bills generation after the second wave of Covid-19. The Ministry proceeds to comment that if the sales of cars and other electronics had not been affected by the lack of supplied semi-conductors, the revenues would still have been higher. The ministry collected Rs 23,861 crores for CGST, 30,421 crores for SGST and, Rs 67,361 crores for IGST which included Rs 32,998 crores collected on import of goods. Apart from that, the cess collection is Rs 8,484 crore, including Rs 699 crore collected on import of goods.

The GST council had decided to get rid of late fees to allow the taxpayers to pay old revenues and be updated with their returns. Measures like these have encouraged the taxpayers to file their returns which is evident from higher tax collections. It has also ensured stricter compliances. The council is also considering taking more steps to restrict Fake ITC and combat tax evasions as per the statements of the government.

The collected revenues from import of goods were up to 39% of last year for the same month. The revenues from the local transactions were up to 19% for the same period including import of services. In noon trade, the Indian stock benchmark senses saw a growth of over 600 points. To quote a private survey, the Indian manufacturing industries have scaled up their productions and have increased their input purchases in anticipation that there will be growth in demands as well.

The high collection is good news for the Indian economy and shows that despite the severe hit by pandemic the economy is now recovering. It is important to mention that the Finance Ministry has recently loaned 1.59 Lakh Crores to States and UTs to exceed the amount of GST compensation accruing in FY 2021-22.

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