The second consecutive month, when GST collections remain above Rs 1 lakh crore after a dip in the second wave of Covid-19 in April-May.
August 2021 Goods and Service Tax collection came in at Rs 1.12 lakh crore going down from Rs 1.16 lakh crore in July, as the data released by the Finance Ministry showed on September 1.
“Revenues crossed Rs 1 lakh crore, which shows the economy is recovering at a fast pace,” said the Finance Ministry, indicating that the economic recovery after the second wave of the Covid-19 is well underway.
In June, the GST revenues slipped to Rs 92,849 crore after maintaining a consistent value above the 1 lakh mark from October 2022 to May 2021. The economic activity reflects the disruption caused by the second wave.
The plunge in the GST collections has debunked the healthy boost in the GST e-way bills from 1.8 million in June 2021 to a daily average of 2.1 million in July 2021, said Aditi Nayar, the Chief Economist of ICRA, a rating agency acknowledging the healthy collections of the past month.
Mr Nayar added that the changes were “reflective of the lifting of restrictions especially across the southern states,”
On Wednesday, the Ministry of Finance issued a statement.
It said that the gross Goods and Service Tax revenue collected in the past month is Rs 1,12,020 crore, of which CGST is Rs 20,522 crore, SGST is Rs 26,605 crore, IGST is Rs 56,247 crore which includes Rs 26,884 crore on import of goods and Cess of Rs 8,646 crore (including Rs 646 crore that were collected on import of goods).
Ease on Covid restrictions bolstered the GST collections.
The ministry also said that the GST revenues have risen past their pre-pandemic levels. The August 2021 collections at Rs 1,12,020 crore were 29.6 per cent higher than in August 2020.
The improved collections for July and August are the result of easing out the Covid-19 restrictions.
The GST collections are being exclaimed as “impressive as they are above Rs 1 lakh crore for several months in succession.” said Deloitte India’s Senior Director, MS Mani.
GST collections were consistently well above the Rs 1 lakh crore mark from October 2020 to May 2021.
When it comes to states, he said that significant manufacturing states have witnessed “an increase of 25 per cent to 35 per cent in collections” when compared to the same period the previous year, which is directly indicative of the economic recovery, which may be faster in the current year.
The Finance Ministry also mentioned the future trend of the maintained GST revenues that will likely remain robust in the upcoming months.
Together with “economic growth, anti-evasion activities, especially action against fake billers”, the ministry significantly contributes to the enhanced GST collections.
It also pointed out that fresh streak collections that topped Rs 1 lakh crore in July and August amazed the economy recovering at a fast pace.
