“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 finance ministry said in a statement. The GST revenue witnessed a growth rate of (-) 41%, (-) 8%, 8% and 14% in the first, second, third and fourth quarters of this financial year, respectively, as compared to the same period last year, clearly indicating the trend in the recovery of GST revenues as well as the economy as a whole.
During the month, revenues from import of goods were 70% higher and the revenues from the domestic transaction (including import of services) are 17% higher than the revenues from these sources during the same month last year. The upward trend over the past few months has emerged owing to 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 has also contributed to the steady increase in tax revenue over the last few months.
“In addition to the trend of higher overall GST collections over the past six months, all major states have shown a significant increase compared to the previous year,” said MS Mani, senior director at Deloitte India. Further, the increase in collections on imports accompanied by the increase in domestic transactions would indicate that the overall production/consumption cycle is back to normal, he added.
The gross GST revenue collected in the month of March 2021 stands 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. Of the gross, cess is Rs 8,757 crore, including Rs 935 crore collected on import of goods. The government has settled Rs 21,879 crore to CGST and Rs 17,230 crore to SGST from IGST as a regular settlement.
In addition, the Centre has also settled Rs 28,000 crore as IGST ad-hoc settlement in the ratio of 50:50 between Centre and States/UTs. The total revenue of Centre and the States after regular and ad-hoc settlements in the month of March 2021 is Rs 58,852 crore for CGST and Rs 60,559 crore for the SGST. The gross amount also includes the release of compensation of Rs 30,000 crore during the month of March 2021.